Manta Network Now Backed by BlackRock's BUIDL Fund

The layers of synergy between DeFi and tradfi are deepening. On June 27, Manta announced that wUSDM, a yield-bearing stablecoin from Mountain Protocol, is now backed by the BlackRock

BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) is now backing wUSDM, a yield-bearing stablecoin from Mountain Protocol.

The integration was announced by Manta on June 27. It marks a new chapter in the growth and security of wUSDM holders, according to the Layer 2 network.

USDM, which previously invested its assets directly in U.S. Treasury bills, now ranks as the 25th-largest stablecoin with a market cap of $47.1 million, data from CoinGecko shows.

BlackRock, a firm managing $9.1 trillion in assets under management (AUM), launched its BUIDL fund on March 20. The deployment served as a major vote of confidence in both on-chain finance and the Ethereum network.

"This is the latest progression of our digital assets strategy," said Robert Mitchnick, BlackRock's Head of Digital Assets. "We are focused on developing solutions in the digital assets space that help solve real problems for our clients.”

All of BUIDL's assets are invested in cash, U.S. Treasury bills, and repurchase agreements, providing shareholders with a low-risk and steady source of yield. The fund's tokenized shares offer a stable value of $1 each, with the fund paying out daily accrued dividends on a monthly basis in the form of additional tokens.

BUIDL rapidly emerged as the largest tokenized treasuries fund, overtaking Franklin Templeton's OnChain U.S. Government Money Fund (FOBXX) — which went live in April 2021 — within seven weeks of launching with $375 million, according to Rwa.xyz.

BUIDL continues to lead the sector with $481.8 million in AUM, accounting for 27% of the on-chain treasuries sector's $1.77 billion market cap. The capitalization of on-chain treasuries is up 130% since the year began.

Multiple DeFi protocols on the Manta network support USDM, allowing users to access additional yields on top of BUIDL's dividends.

Manta is currently the 10th-largest Layer 2 network by total value locked with $643.2 million, according to L2beat.