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 market

BlackRock’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 blockchain

BlackRock’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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