BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has reached nearly $500 million in assets under management.
The tokenized fund, represented by the BUIDL token on the Ethereum network, now owns $491 million in assets, according to Dune Analytics facts.
Blockchain analytics platform IntoTheBlock noted that this milestone comes amid price struggles for major digital assets such as Bitcoin and Ethereum. It declared:
“While the crypto market is struggling, BlackRock’s BUIDL fund, operating on the Ethereum network, continues to attract new investors. The fund requires a minimum participation of $5 million.”
The fund, created with tokenization services platform Securitize, invests 100% of its total assets in cash, US Treasuries and repurchase agreements, allowing investors to earn returns while holding the token on the blockchain.
Remarkably, it has captured almost 30% of the market since its launch in March. However, on the chain facts shows that only 16 wallets hold tokens from the fund, with 75% of the supply concentrated among the top 5 holders.
Interestingly, Ondo Finance, an institutional grade financial firm, owns about 44.8% of the BUIDL fund. These funds will be split between the two wallets, OUSG Holding and OUSG Instant Manager.
Interest in tokenization is growing.
BlackRock BUIDL’s rapid growth underlines the growing institutional interest in tokenizing real-world assets (RWA), such as bonds and credits.
Over the past year, this process has gained widespread acceptance, with a recent Ernst & Young survey showing that 50% of institutional investors are interested in tokenized assets. The report indicates that investors are flocking to these assets because it has the benefit of portfolio diversification and can also provide greater liquidity.
It added:
“Tokenizing alternatives has the potential to enable access to a wider range of investors through lower minimums, and also the potential to enable diversification to larger institutional investors as they allocate more alternatives, and boost liquidity once secondary markets are located.”
According to data from Dune Analytics, more than $1.5 billion worth of US Treasury bonds now exist on blockchain networks such as Ethereum, Polygon and Solana.