Tokenized Treasury funds have rapidly expanded, surpassing
$2 billion in market capitalization, just five months after reaching the $1 billion mark. This growth reflects the increasing interest in digital U.S. government bonds among investors.
The Role of BlackRock’s BUIDL Fund
A significant driver of this growth has been BlackRock’s
USD Institutional Digital Liquidity Fund (BUIDL). Launched in March, BUIDL quickly became the largest tokenized Treasury fund, with assets now exceeding
$503 million. The rapid rise of BUIDL underscores the strong demand for tokenized U.S. Treasury notes.
Expansion Among Other Funds
Other major players in the tokenized Treasury market, such as Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX) and Ondo’s U.S. Dollar Yield (USDY), have also experienced notable growth. Additionally, smaller issuers like Hashnote, OpenEden, and Superstate have seen significant increases in their market caps, reflecting the broader appeal of these digital assets.
Growing Popularity Among Investors
Tokenized Treasuries have become an attractive option for investors looking to diversify their portfolios. These digital assets offer exposure to the U.S. Treasury market while providing the flexibility and liquidity of blockchain technology. As U.S. Treasury yields have risen sharply in recent years, these funds present a compelling alternative for both crypto traders and traditional investors.
The tokenized Treasury market is poised for further expansion, especially given the overall size of the U.S. Treasury market, which stands at
$27 trillion.
Read more at CoinDesk.
