BlackRock's BUIDL Token Fund Triples In 3 Weeks

BlackRock's Ethereum-based tokenized money market fund has more than tripled in the past three weeks, approaching the $2 billion mark, amid growing demand for digital assets seen as safe havens.

BlackRock's US dollar-denominated Institutional Digital Liquidity Fund (BUIDL) has grown from $615 million to $1.87 billion in just three weeks, according to Token Terminal data provided by Leon Weidmann, head of research at Onchain Foundation, a Web3 intelligence platform.

"The BUIDL fund's tokenized assets jumped from $615 million to $1.87 billion in just three weeks. The tokenization wave is gaining momentum faster than many think," the researcher wrote in a post on X on 26 March.

BlackRock's BUIDL fund is part of the broader real asset tokenization (RWA) industry, which includes financial products and tangible assets such as real estate and artwork issued as token on a blockchain, making them more accessible and tradable for investors.

BlackRock's Fund Growth Reflects Institutional Demand for RWAs

According to Edwin Mata, co-founder and CEO of Brickken, a European RWA platform, the growth of BlackRock's BUIDL fund reflects a growing institutional demand for tokenized assets, aided by increased regulatory clarity.

"In the US, we are seeing a shift towards a more cryptocurrency-friendly regulatory environment," said the CEO.

"The SEC has recently concluded several investigations without enforcement actions, including those into Immutable, Coinbase and Kraken. This trend suggests a move towards clearer regulatory frameworks that support innovation in the digital asset sector," he added.

Launched in March 2024 in partnership with tokenization platform Securitize, the BUIDL fund aims to make off-chain assets "less boring," according to Michael Sonnenschein, COO of Securitize, in a recent Fortune report.

RWAs Near $20 Billion While Bitcoin Loses Launch

Real tokenized assets reached a new cumulative all-time high of over $17 billion on 3 February, after Bitcoin fell below $100,000.

According to RWA.xyz, the total value of RWAs on the blockchain is 0.5% below the $20 billion mark, with a total cumulative value of $19.57 billion.

According to Alexander Loktev, Chief Revenue Officer of P2P.org, an institutional provider of staking and infrastructure services for cryptocurrencies, RWAs could reach new highs in 2025, attracting increasing interest from investors, while Bitcoin struggles to maintain momentum.

"Given the recent movements of major financial institutions, particularly the increasing involvement of BlackRock and JPMorgan in tokenization, I believe we can reach $50 billion in RWAs," said Loktev.

Traditional financial institutions (TradFi) are starting to view tokenised assets as a "serious bridge to DeFi" as they seek investments in digital assets with predictable returns, Loktev concluded.

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