Since the recent launch of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), over $1 billion in US Treasury bonds have been tokenized on the blockchain.
Staff Tokenization
The tokenization of U.S. Treasury bonds is an important movement in asset management, as it tokenizes real assets on the blockchain using digital tokens. BlackRock launched BUIDL on Ethereum on March 20, 2024, and the fund has reached a capitalized market of $244.8 million. This marks a significant milestone in the adoption of blockchain in the traditional financial sector, paving the way for new possibilities in asset management and transparent transactions.
Cash deposits
Deposits into BUIDL were made by Ondo Finance, a real-asset tokenization company. Ondo has deposited a total of $95 million into the fund, contributing to BUIDL’s growth. Ondo Finance deposits now represent 38% of the BUIDL fund. This strong involvement underlines the growing confidence of industry players in the opportunities offered by digital assets.
Outlook for the future
Treasury tokenization is a trend that continues to grow in popularity, particularly in the current high interest rate environment. Investors are looking for alternatives to stablecoin to achieve higher yields, and tokenization of U.S. Treasury bonds offers an attractive solution.
Conclusion
More than $1 billion in U.S. Treasury bonds have been tokenized on the blockchain, marking an important step forward in digital asset management. The tokenization of government bonds offers interesting prospects for investors seeking higher yields in the current context of high interest rates.
