BlackRock’s BUIDL Fund Triples in Value with the Tokenization Wave

BlackRock’s Ethereum-based tokenized money market fund has more than tripled in value over the past three weeks, approaching the $2 billion mark, during a period of rising demand for safe digital assets.

BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) saw an increase of more than three times, rising from $615 million to $1.87 billion in the past three weeks. This data is based on Token Terminal data shared by Leon Waidmann, research director at the Web3 intelligence platform Onchain Foundation.

Waidmann shared in a post on March 26, “The BUIDL fund’s TVL exploded from $615M to $1.87B in just 3 weeks. The tokenization wave is hitting faster than most realize.”

BUIDL Fund Reflects Growing Institutional Interest in Tokenization

BlackRock’s BUIDL fund is part of the broader real-world asset (RWA) tokenization sector, which involves the tokenization of financial products and tangible assets such as real estate and valuable artworks on the blockchain, increasing investor access to and trading opportunities for these assets.

The surge in BlackRock’s fund reflects growing institutional demand for tokenized real-world assets, amid a reduction in regulatory uncertainty. Edwin Mata, co-founder and CEO of Brickken, stated, “The US is witnessing a significant shift toward a more crypto-friendly regulatory environment,” and added:

“The SEC has recently concluded several investigations without enforcement actions, including those involving Immutable, Coinbase, and Kraken.”

BlackRock launched the BUIDL fund in March 2024 in partnership with tokenization platform Securitize. Michael Sonnenshein, COO of Securitize, said that the fund aims to “make offchain assets less boring and more interesting.”

RWAs hit a new all-time high of over $17 billion on February 3, following Bitcoin’s drop below $100,000.

RWA Value Approaches $20B, New Records Expected in 2025

The total value of on-chain RWAs is now just 0.5% away from surpassing the $20 billion mark, with a total cumulative value of $19.57 billion. RWAs may rise to new all-time highs in 2025 as they attract investor interest amid Bitcoin’s lack of momentum. Alexander Loktev from P2P.org said, “Given the increasing participation of major financial institutions, particularly BlackRock and JPMorgan in tokenization, I believe the TVL could reach $50 billion.”

Loktev also pointed out that TradFi (traditional finance) institutions are “starting to view tokenized assets as a serious bridge to DeFi.”

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