BlackRock's BUIDL Fund Soars Past Franklin Templeton in Tokenized Asset Market

BlackRock's BUIDL tokenized asset fund has surpassed Franklin Templeton's similar fund to become the largest of its kind, exhibiting rapid asset growth to $375 million just six weeks after its inception. This success is attributed to the popularity of Ondo Finance's tokenized Treasury offering (OUSG), which utilizes BUIDL as a reserve asset, resulting in significant inflows.

BlackRock's BUIDL Fund Surpasses Franklin Templeton's in Tokenized Asset Market

New York, April 29, 2024 - BlackRock, the world's largest asset manager, has rapidly ascended to the forefront of the tokenized asset fund industry. Its recently launched BUIDL fund, represented by the BUIDL token on the Ethereum network, has surged past Franklin Templeton's OnChain U.S. Government Money Fund to become the industry leader.

Within six weeks of its inception on March 21, BUIDL has amassed a remarkable $375 million in assets, buoyed by a $70 million influx in the previous week alone. This growth has propelled BUIDL to a commanding market share of nearly 30%. In contrast, Franklin Templeton's BENJI token-represented fund has experienced a decline in assets to $368 million, attributed to modest outflows during the same period.

The remarkable growth of BlackRock's BUIDL fund can be partially attributed to the success of Ondo Finance's tokenized Treasury offering (OUSG). OUSG utilizes BUIDL as a reserve asset and has attracted a significant $50 million in inflows within a week.

The trend of tokenizing traditional assets, such as bonds and credit, into blockchain-based tokens, known as tokenization of real-world assets (RWA), has garnered substantial attention from both digital asset firms and traditional finance behemoths. Tokenization offers significant advantages, including accelerated settlement times, enhanced operational efficiency, and improved transparency.

U.S. Treasuries have emerged as a key focus for tokenization initiatives. They provide a low-risk and familiar investment option for on-chain cash, enabling investors to secure stable returns within the blockchain ecosystem. The tokenized Treasury market has experienced significant growth, surging to nearly $1.3 billion from a mere $100 million in early 2023. BlackRock's foray into this space has been a significant catalyst for this growth.

This surge in tokenized asset offerings underscores the growing interest in blockchain technology as a means to streamline and enhance financial transactions. As tokenization continues to gain traction, BlackRock's BUIDL fund is well-positioned to maintain its dominance in this rapidly evolving market.