The tokenized U.S. Treasury fund, BUIDL, has exceeded $1 billion in assets under management following a $200 million investment from Ethena.
According to data from RWA.xyz, the total assets in the BlackRock BUIDL fund have increased by 57% over the past month after Ethena’s allocation on March 13. This fund, created in collaboration with Securitize, enables investors to access cash, repurchase agreements, and U.S. Treasuries.
Initially launched on Ethereum (ETH), BUIDL has expanded its reach to platforms such as Aptos (APT), Arbitrum (ARB), Avalanche (AVAX), and Optimism (OP) via the Wormhole (W) bridge. Management of its tokenized assets is handled by custodians including Anchorage Digital, BitGo, and Fireblocks, while BNY Mellon oversees cash and securities management.
Last December, Ethena introduced USDtb, a stablecoin designed to accompany Ethena USDe (USDe), its synthetic currency. Primarily backed by BUIDL, the supply of USDtb has rapidly grown. Unlike traditional stablecoins, USDtb generates yield, attracting investors who are interested in earning passive income.
In addition to BlackRock and Ethena, numerous other companies are embracing the tokenized Treasury movement. Ondo (ONDO) Finance’s OUSG and USDY offerings have surged 53% in value recently, approaching a total valuation of nearly $1 billion. Furthermore, leading prime brokers like FalconX are now accepting tokenized Treasuries, including BUIDL, as collateral for leveraged transactions.
This transition signifies a growing institutional confidence in financial products powered by blockchain technology. As reported by RWA.xyz, the overall market for tokenized Treasuries has rapidly expanded, reaching assets worth $4.4 billion as of March 14. The sector has quadrupled in size over the past year, with demand notably increasing following the U.S. elections in November.
Market analysts indicate that rather than holding non-yielding stablecoins, investors are more inclined to seek direct exposure to Treasuries to unlock yield, which currently averages 4.28%.