HomeNewsBlackRock's BUIDL Fund Leads Surge in Tokenized Treasury Market, Exceeds $245M Inflows

BlackRock’s BUIDL Fund Leads Surge in Tokenized Treasury Market, Exceeds $245M Inflows

- Advertisement -
  • BlackRock and Ondo cater to different markets with minimum investments of $5 million and $100,000 respectively, broadening access.
  • Comparison with Franklin Templeton’s FOBXX shows BUIDL’s rapid growth, highlighting the burgeoning interest in tokenized money market funds.

Just a week after its announcement, BlackRock’s foray into digital finance, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), has garnered significant attention, accumulating $245 million in assets from seven investors. 

Ondo Finance, known for tokenizing BlackRock ETF funds, contributed $95 million to BUIDL, accounting for 38% of the fund’s total value. Among the other investors, two have invested $50 million each, one has contributed $35 million, and four others have added $5 million each.

This development places BlackRock in what appears to be a competitive stance with Ondo Finance, yet the collaboration seems to be mutually beneficial. Traditionally, redeeming the Ondo tokenized money market fund (OUSG) required a waiting period due to the two-day settlement of traditional securities.

However, with this new venture, Ondo anticipates offering its investors the ability to invest and redeem funds instantly, around the clock, every day of the year.

You may be interested in: BlackRock CEO Unfazed by Ethereum Security Debate, Eyes Ether ETF

Although BlackRock and Ondo initially seem to cater to different market segments, with BlackRock’s minimum investment set at $5 million and Ondo’s OUSG at $100,000, this collaboration offers added reassurance to Ondo investors by making the BlackRock BUIDL investment visible on-chain.

Interestingly, Ondo boasts 42 token holders, six of whom have investments exceeding $5 million. Notably, a wallet containing $14 million is linked to Ondo’s DeFi protocol, Flux Finance. The assets from the remaining five major investors total $60 million, nearly two-thirds of OUSG’s funds.

Technically, these five investors could directly invest in BUIDL. However, OUSG caters to a global audience, whereas BUIDL operates under Rule 506c, limiting it to U.S. accredited investors.

You can read: BlackRock Enters Tokenization Race: Launches Ethereum-Based Fund Amid Regulatory Rumors – Is ETH in Danger?

BlackRock’s BUIDL could potentially rival Franklin Templeton’s FOBXX digital money market fund.

Government Money Fund (FOBXX) holds $360.2 million in US Treasurys.

Over a period of two years, FOBXX succeeded in gathering $270 million in assets under management (AUM), with its current tally standing at $358 million, supported by around 385 investors.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628