The financial world is witnessing a pivotal shift as traditional asset management giants embrace blockchain innovation. At the forefront of this transformation is BlackRock, the world’s largest asset manager, whose tokenized fund BUIDL has officially surpassed $500 million** in assets under management (AUM), reaching **$502.8 million according to on-chain data from Etherscan.
This milestone marks a turning point for the adoption of real-world assets (RWA) on blockchain networks, reinforcing confidence in the future of tokenized finance. BUIDL, formally known as the BlackRock USD Institutional Digital Liquidity Fund, was launched in March on the Ethereum blockchain through a strategic collaboration with Securitize Markets. The fund enables institutional investors to gain exposure to U.S. Treasury yields through a fully tokenized, blockchain-native structure.
The Rise of BUIDL: A New Benchmark in Tokenized Finance
In just over four months since its launch, BUIDL has become the first tokenized fund to cross the half-billion-dollar threshold, positioning itself as the largest of its kind globally. Data from rwa.xyz, a leading tracker of real-world asset tokenization, confirms BUIDL’s leadership in the sector.
This rapid growth has displaced the previously dominant Franklin Templeton OnChain U.S. Government Money Fund (FOBXX) into second place, which now manages over $400 million in AUM. FOBXX, available since April 2021, was once the benchmark for on-chain institutional funds — but BUIDL’s explosive momentum signals a new era of scale and credibility for blockchain-based asset management.
Competitive Landscape: Who Else Is Leading in Tokenized Funds?
While BUIDL leads the pack, it’s not alone in driving innovation in tokenized treasuries. The third-largest player is Ondo Finance’s USD Yield fund (USDY), launched in August of the previous year, now managing $281 million in AUM. Ondo has emerged as a key innovator in decentralized finance (DeFi), bridging traditional fixed-income instruments with blockchain accessibility.
Other notable contributors to the RWA space include Clearpool and Maple Finance, both of which have gained traction by offering tokenized lending solutions to institutional borrowers. In May alone, the native tokens of these platforms saw their fully diluted market capitalization surge by 53%, reflecting strong investor appetite for yield-generating, real-world-asset-backed products.
Why Tokenized Treasuries Are Gaining Momentum
The broader tokenized U.S. Treasury market has grown by more than 130% since the start of 2025, now exceeding $1.8 billion in total value. This surge is fueled by several key factors:
- Instant Settlement: Unlike traditional markets that operate on T+2 settlement cycles, blockchain-based funds enable near-instantaneous transaction finality.
- 24/7 Market Access: Digital asset markets never close, offering continuous liquidity and trading opportunities.
- Transparency and Auditability: On-chain funds provide real-time visibility into holdings and flows via public blockchains like Ethereum.
- Programmable Finance: Smart contracts allow for automated compliance, distribution of yields, and customizable investment strategies.
These advantages are particularly appealing to institutional investors seeking efficiency, security, and scalability — all while maintaining exposure to low-risk government securities.
The Big Picture: Real-World Assets Reach $12.45 Billion Market Cap
The total market capitalization for real-world assets (RWA) now stands at $12.45 billion, with analysts forecasting sustained growth over the coming years. Last month alone, RWA emerged as one of the top-performing sectors in crypto, driven by increasing participation from major financial institutions and improved infrastructure for asset tokenization.
As more firms explore how to bring bonds, equities, real estate, and private credit onto blockchains, the line between traditional finance (TradFi) and decentralized finance (DeFi) continues to blur.
Larry Fink’s Vision: “This Is a Technological Transformation”
BlackRock CEO Larry Fink has been one of the most vocal advocates for asset tokenization. In a high-profile interview with Bloomberg earlier this year, he emphasized the transformative power of blockchain technology:
“We could customize strategies through tokenization that fits every individual, we would have instantaneous settlement. We believe this is a technological transformation for financial assets.”
Fink’s comments underscore BlackRock’s long-term strategy: leveraging blockchain not just for efficiency, but as a foundational upgrade to global financial infrastructure.
His vision aligns with broader industry trends where tokenization promises to democratize access to high-quality institutional-grade assets — previously available only to large investors — and make them accessible to a wider range of participants through fractional ownership and lower entry barriers.
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FAQ: Understanding BUIDL and Tokenized Funds
Q: What is BlackRock’s BUIDL fund?
A: BUIDL is the BlackRock USD Institutional Digital Liquidity Fund, a tokenized fund built on Ethereum that provides institutional investors with yield exposure to U.S. Treasuries via blockchain technology.
Q: How does a tokenized fund work?
A: A tokenized fund represents shares of an underlying asset pool (like Treasuries) as digital tokens on a blockchain. Investors can buy, sell, or redeem these tokens programmatically, with transparent on-chain records of ownership and performance.
Q: Is BUIDL available to retail investors?
A: Currently, BUIDL is designed for institutional investors. However, similar products from other providers may offer retail access through regulated platforms.
Q: What makes tokenized treasuries different from traditional ones?
A: Tokenized treasuries offer faster settlement, 24/7 availability, greater transparency, and potential integration with DeFi applications — all while maintaining the safety of U.S. government-backed securities.
Q: Why is BlackRock’s move into tokenization significant?
A: As the world’s largest asset manager, BlackRock’s entry validates blockchain as a serious financial infrastructure layer. It signals growing institutional confidence in digital assets and accelerates mainstream adoption.
Q: Could tokenized funds replace traditional mutual funds?
A: While not an immediate replacement, tokenized funds are likely to coexist and gradually evolve alongside traditional structures, offering enhanced efficiency and new functionality over time.
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Final Thoughts: The Future Is Tokenized
BlackRock’s BUIDL surpassing $500 million in AUM isn’t just a number — it’s a signal. It demonstrates that when trusted institutions combine their expertise with cutting-edge technology, they can drive meaningful adoption at scale.
As the RWA ecosystem expands beyond treasuries into areas like real estate, corporate debt, and private equity, we’re likely to see even greater convergence between traditional finance and blockchain innovation.
For investors, developers, and financial professionals alike, the message is clear: tokenization is no longer theoretical — it’s operational, growing fast, and here to stay.
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