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BlackRock bags one-third of $1.3bn tokenised US bond market only two months after launch

26d ago•

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bearish:

BlackRock’s Ethereum-based tokenised fund has secured about a third of the $1.3 billion tokenised Treasuries market in just under two months, according to data shared by S&P Global Ratings.

BUIDL has bagged $381 million since its March 20 launch, enabling it to leapfrog rival Franklin Templeton’s Franklin OnChain US Government Money Fund, which has $360 million in tokenised Treasuries on Polygon and Stellar.

Stepping stones

BlackRock’s fund began with $100 million in funding, and attracted another $160 million in the week after its launch. It has gained over $80 million in the last month.

About two dozen other players, such as real-world asset tokenisation platform Ondo Finance, hold the remaining third of the tokenised bond market.

BUIDL’s success has taken “the benefits of tokenisation beyond theory and into practice” showing that there’s yet more to come, Andrew O’Neill, digital assets managing director, S&P Global Ratings, told DL News.

The news highlights how the tokenisation market is heating up.

BlackRock CEO Larry Fink has said that the firm’s launch of a successful spot Bitcoin exchange-traded fund and similar products are “just stepping stones towards tokenisation.”

The company and Franklin Templeton aren’t the only traditional financial institutions to wedge into the sector.

JPMorgan Chase, Visa, HSBC, Santander Bank, and Goldman Sachs are among the traditional players vying for a slice of a market opportunity estimated to be worth $14 trillion by 2030.