According to CryptoPotato, more than $1 billion worth of United States Treasuries have been tokenized on-chain across Ethereum, Polygon, Solana, and other blockchains. This milestone was achieved with the recent launch of the BlackRock USD Institutional Digital Liquidity Fund. BlackRock's Ethereum-based product, BUIDL, was introduced on March 20 and has surpassed a market capitalization of $244.8 million. Data from 21Shares' Dune Analytics dashboard shows that BUIDL is now second only to Franklin Templeton's 11-month-old Franklin OnChain US Government Money Fund (FOBXX), which holds $360.2 million in US Treasuries. The dashboard also reveals that $1.08 billion in US Treasuries has been tokenized across 17 products.
Ondo Finance, a real-world asset tokenization firm, recently deposited $95 million into BlackRock's BUIDL fund to facilitate instant settlements for its own US Treasury-backed token, OUSG, establishing a 38% share in BUIDL. BUIDL's value is pegged 1:1 with the United States dollar, and it distributes accrued dividends to investors monthly. According to 21.co's Dune dashboard, tokenized government treasuries are increasingly attractive compared to stablecoin yields, particularly given the current high-interest rate environment.
US Treasuries serve as a gateway to tokenization, offering low-risk options for investors to store on-chain cash and earn stable yields within the blockchain ecosystem. The market has surged in the past year, growing from $100 million in early 2023 to its current size. While US Treasuries represent just one aspect of this trend, assets such as stocks and real estate can also undergo tokenization. BlackRock CEO Larry Fink sees blockchain tokenization as a means to boost capital market efficiency, with forecasts projecting a $16 trillion market by 2030, per Boston Consulting Group. Additionally, Ethereum leads in tokenizing real-world assets (RWA), accounting for $700 million of the total value tokenized on-chain. Franklin Templeton's FOBXX, tokenized on Stellar and Polygon, commands the second-largest market share at $358 million, followed by Polygon with $13 million. Major asset management firms like WisdomTree and blockchain-native companies such as Ondo Finance, Backed Finance, Matrixdock, Maple Finance, and Swarm actively participate in RWA tokenization.