BlackRock captures 42% of the Treasury bond market with its BUIDL tokenized fund

BlackRock leads the tokenized Treasury bond market with its BUIDL fund, which controls 42% of the sector and exceeds $2.400 billion in value.

BlackRock has consolidated its leadership in the tokenized Treasury bond market with its BUIDL fund, which already controls 42% of this rapidly expanding segment. Launched in March 2024 in partnership with Securitize, BUIDL combines the robustness of US Treasury bonds with the efficiency and transparency of blockchain technology, allowing investors access to daily returns and continuous liquidity.

With a market capitalization exceeding $2.400 billion and growing by over 200% since July 2024, BUIDL dominates the tokenized asset market, surpassing competitors such as Franklin Templeton and Hashnote. Furthermore, its recent expansion to the Solana blockchain, alongside Ethereum and other networks, broadens its reach and improves scalability and costs for users.

The creation and launch of this fund represents a revolution in traditional asset management, modernizing money market funds and democratizing access to financial instruments previously limited to large institutions. BlackRock's strategy demonstrates how large asset managers are embracing blockchain to transform real-asset investing, marking a milestone in the convergence of traditional finance and digital technology.

BlackRock boosts the digital bond market

BlackRock has emerged as a dominant player in the field of tokenized digital bonds. Its BUIDL fund has been instrumental in driving unprecedented growth in institutional investment through digital assets backed by U.S. Treasury bonds. Tokenizing these bonds allows them to be represented as tokens on the blockchain, enabling fast, secure, and transparent transactions.

The use of blockchain in the process guarantees not only traceability and security, but also 24/7 access to markets, eliminating time and geographic barriers for investors. Thanks to this technology, bonds are transformed into digital assets that are easy to trade and monitor, with the added advantage of immutable and auditable records in real time.

BlackRock's leadership is evident not only in the market share it has captured, but also in its ability to attract institutional investors who have traditionally been reluctant to adopt disruptive technologies. With an offering that combines the solidity of Treasury bonds with blockchain innovation, the firm has managed to build trust and consolidate its position as a pioneer in this space.

Certificate

Blockchain Course

Basic level

Take this course where we explain blockchain in a clear, simple and concise way so that you have a very clear idea of ​​what this new technology consists of.

GRATIS 25 lessons

Start now

The explosive growth of the BUIDL fund

In just a few months, BUIDL has managed to capture almost half of the tokenized bond market share, demonstrating its relevance and innovation. This fund has experienced explosive growth, as evidenced by the data from the RWAxyz platform, with a 92% increase in assets under management in tokenized Treasury bonds. This accelerated pace reflects the success of its strategy and the positive market response.

Currently, BUIDL manages assets totaling approximately $2.460 billion, accounting for 42% of the total tokenized bond market, which is valued at nearly $6.000 billion, according to the platform. The growth of this sector is paving the way for a new era of institutional investment, where practicality and technological innovation combine to offer more accessible and flexible products.

A key aspect of BUIDL is that each token in the fund is backed one-to-one by US dollars, providing stability and trust similar to that of a traditional asset, but with the added advantage of being tradable on blockchain platforms 24/7. Furthermore, the fund offers daily dividends derived from the income generated by these assets, which represents a significant attraction for investors seeking consistent income with the security of government backing.

This combination of extraordinary growth and innovative features makes BUIDL a benchmark for other financial institutions looking to modernize their portfolios and embrace the competitive advantages that tokenization offers.

Tokenization: An innovation that modernizes traditional investing

Tokenization involves converting physical or traditional assets into digital tokens that represent ownership rights over those assets on a blockchain. This process not only democratizes access to investments previously reserved for large investors, but also improves liquidity and transparency.

For example, by tokenizing Treasury bonds, BlackRock allows a wide range of investors, from large institutions to individual participants, to buy and sell fractions of these bonds without the limitations inherent in traditional markets. This facilitates entry into previously inaccessible or illiquid markets and offers greater flexibility in portfolio management.

Tokenization also helps reduce operational costs by eliminating intermediaries and streamlining registration and clearing processes. Thanks to blockchain technology, transactions are fast, secure, and verifiable—a crucial advantage in financial environments where reliability is essential.

This technological shift is transforming not only the way bonds are traded, but also other classic assets such as real estate, art, and precious metals. BlackRock is leading this innovative trend, demonstrating that tokenization can be an effective bridge between traditional assets and the digital economy.

Finally, the success of BlackRock and its BUIDL fund has served as a wake-up call for other major financial players, who are beginning to embrace tokenization as a key tool to modernize their offerings and attract new investors. Institutions such as Franklin Templeton and Fidelity are following this trend, launching tokenized funds or developing similar blockchain-based offerings that highlight the benefits blockchain brings to optimizing traditional investments.

In conclusion, BlackRock's tokenization of Treasury bonds through its BUIDL fund not only represents a milestone in technological adoption, but also opens the door to more accessible, transparent, and efficient investing. This significant transformation demonstrates how the combination of blockchain, bonds, tokenization, and investing can revolutionize traditional financial markets and benefit investors of all types, shaping the financial landscape of the future.

Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.