Tokenized Treasury funds have exceeded $2 billion in market capitalization, driven by offerings such as BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). This growth highlights the increasing appeal of digital representations of U.S. government bonds.
Growing Popularity of Digital U.S. Government Bonds
Data from RWA.xyz reveals that digital U.S. government bonds are now traded as tokens on blockchain platforms like Ethereum. This shift reflects a broader trend towards blockchain-based financial products.
BlackRock’s BUIDL Achieves $500 Million Milestone
Remarkably, BlackRock’s BUIDL fund reached a market cap of $500 million. Consequently, it played a significant role in the $2 billion milestone. The fund’s growth, along with that of others, shows a trend where investors diversify into tokenized assets.
In addition, the total market cap doubled from $1 billion to $2 billion in just five months. Notably, recent data indicates that the market cap increased by 2.61% over the past week, with Ethereum-based products making up $1.5 billion of this market share.
BlackRock Surpasses Grayscale as Top Holder of On-Chain Assets
Furthermore, BlackRock has surpassed Grayscale to become the largest holder of on-chain assets through its ETFs. This change highlights BlackRock’s increasing influence in the digital asset space. Institutional interest in assets like Bitcoin and Ethereum is growing, supported by greater acceptance of ETFs.
As of August 16, BlackRock’s ETF holdings in IBIT and ETHA reached $21.22 billion. This figure exceeds Grayscale’s combined holdings of $21.20 billion in GBTC and ETHE funds. Although Grayscale manages a larger overall balance through its GDLC fund, BlackRock’s recent growth illustrates a shift in market dynamics and ETF approval.
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