BlackRock’s BUIDL Fund Hits $1B After Ethena’s $200M Investment

• BlackRock and Securitize’s BUIDL token backed by US treasuries, surpasses $1 billion AUM. 
• An additional $200 million allocation from Ethena has helped push it past this threshold. 
• Ethena’s yield-generating USDtb token, backed by USDC, USDT now has a $540 million supply.

BUIDL, or the BlackRock USD Institutional Digital Liquidity Fund, is a tokenized fund launched by BlackRock in partnership with Securitize and backed by U.S. Treasuries. It offers crypto investors exposure to U.S. Treasuries, cash, and repurchase agreements on the Ethereum blockchain. Recent reports confirm that BUIDL has surpassed $1 billion in assets, with Securitize noting that Ethena’s $200 million addition played a key role in reaching this milestone.

The fund’s planned expansion to blockchains such as Aptos, Arbitrum, Avalanche, Optimism, and Polygon in November 2024 demonstrates its ambition to become the largest tokenized money-market fund. In December 2024, Ethena Labs introduced USDtb, a new stablecoin backed by BlackRock’s BUIDL fund alongside reserves such as USDC and USDT. According to reports, USDtb has a total supply of $540 million, with $320 million in BUIDL tokens, meaning BUIDL makes up approximately 59.26% of its reserves.

To strengthen USDtb’s reserves, Ethena likely added $200 million in BUIDL holdings. As a key backing asset, BUIDL enhances USDtb’s stability, aligning with Ethena’s broader strategy to navigate market conditions. This milestone has garnered significant attention, with Carlos Domingo, Co-founder and CEO of Securitize, stating, 

BlackRock’s BUIDL surpassing $1B in AUM represents a significant moment for on-chain finance. BUIDL is a pioneering product that has paved the way for tokenized securities to demonstrate for the investment community the integration and accessibility that the market desperately needed.

Related: BlackRock CEO Larry Fink Predicts Bitcoin Could Hit $700K

Additionally, many crypto enthusiasts noted that BlackRock is further embracing tokenized assets, signaling a convergence of TradFi and DeFi, while others celebrated the growing adoption trend. This event is a milestone in the integration of traditional finance and cryptocurrency and signals an institutional acceptance of blockchain. Moreover, BUIDL’s rapid growth from $250 million in November 2024 to over $1 billion by March 2025 could boost investor confidence in tokenized assets. This may lead to more traditional financial products being tokenized, improving liquidity and accessibility. 

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