BlackRock’s BUIDL drives 92% surge in tokenized US treasury market
Blockchain-based US Treasuries are gaining serious momentum, edging closer to a new all-time high of $6 billion in value.
These digital financial instruments mirror traditional government bonds but live on-chain, offering investors yield-bearing exposure with the added benefits of blockchain technology.
According to real-world asset platform RWA.xyz data, tokenized treasuries on public blockchains were $4.01 billion as of January.
Since then, the figure has soared by more than 43%, reaching approximately $5.95 billion.
Tokenized Treasury TVL (Source: RWA.xyz)
This sharp increase reflects growing institutional confidence in blockchain as a tool for modernizing fixed-income markets.
Ethereum is the dominant blockchain in this sector, hosting $4.3 billion of tokenized Treasuries. Stellar and Solana follow with $474 million and $273 million, respectively.
BlackRock’s BUIDL dominates marketBlackRock’s USD Institutional Digital Liquidity Fund, widely known as BUIDL, has emerged as the clear market leader.
RWA.xyz data shows the fund has accumulated $2.47 billion in assets under management, accounting for 42% of the total tokenized treasury space. Over the last month, BUIDL’s value has grown by 92%, highlighting its rapid adoption.
Ethereum remains the primary blockchain for BUIDL, holding more than 91% of its supply, or around $2.3 billion.
BlackRock’s BUIDL (Source: RWA.xyz)
Meanwhile, the rest is spread across newer blockchains and Ethereum Layer-2 networks, including Arbitrum, Polygon, Optimism, Aptos, and Avalanche. Aptos and Avalanche each host around $53 million of the fund’s value.
Launched in March 2024, the fund pays out daily dividends generated from short-term US Treasury assets.
Each BUIDL token is backed one-to-one with the US dollar, offering yield potential similar to Treasuries and functioning like a stablecoin.
TradFi embraces blockchainBlackRock’s success with BUIDL reflects a more significant movement among financial institutions embracing tokenized real-world assets (RWAs).
Industry analysts have pointed out that tokenized Treasuries offer a practical bridge between traditional finance and decentralized ecosystems.
As a result, several major financial firms are also entering the space. Franklin Templeton, for instance, operates a competing tokenized fund with a market cap of $706 million.
Meanwhile, Fidelity is also preparing to join the race. The asset manager recently filed with the US Securities and Exchange Commission (SEC) to launch “OnChain,” a blockchain-powered version of its Treasury money market fund.
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