Treasury Securities Worth More Than $1 Billion Tokenized on Ethereum, Polygon, and Solana

CryptoPotato reports that United States Treasuries worth more than $1 billion have been tokenized on-chain across multiple blockchains, including Ethereum, Polygon, Solana, and others. The aforementioned achievement was attained through the recent introduction of the BlackRock USD Institutional Digital Liquidity Fund. BUIDL, an Ethereum-based product developed by BlackRock, debuted on March 20 and has since surpassed $244.8 million in market capitalization. According to data from the Dune Analytics interface of 21Shares, BUIDL is currently ranked second in US Treasuries, trailing only the Franklin OnChain US Government Money Fund (FOBXX), which has been in operation for eleven months and possesses $360.2 million. Additionally, $1.08 billion in US Treasuries has been tokenized across seventeen products, according to the dashboard.

Real-world asset tokenization firm Ondo Finance recently established a 38% stake in BlackRock's BUIDL fund by depositing $95 million into facilitate immediate settlements for its own US Treasury-backed token, OUSG. The value of BUIDL is fixed at a 1:1 ratio with the United States dollar, and the company provides investors with monthly accrued dividends. In the current environment of high interest rates, tokenized government treasuries are becoming an increasingly attractive alternative to stablecoin yields, according to the Dune dashboard of 21.co.

US Treasuries function as an entry point to tokenization, providing investors with low-risk alternatives to hold on-chain currency while generating consistent returns within the blockchain ecosystem. The market has experienced significant growth over the last year, expanding from $100 million at the beginning of 2023 to its present magnitude. Tokenization can also affect real estate and equities, in addition to US Treasuries, which are merely one expression of this trend. Larry Fink, the chief executive officer of BlackRock, views blockchain tokenization as a way to increase the efficacy of the capital markets; Boston Consulting Group projects a $16 trillion market by 2030. Moreover, Ethereum is the frontrunner in the tokenization of real-world assets (RWA), contributing to the overall value tokenized on-chain by $700 million. With a market share of $358 million, FOBXX, which is tokenized on Stellar and Polygon and is owned by Franklin Templeton, ranks second only to Polygon with $13 million. Blockchain-native companies and major asset management firms, including WisdomTree, Ondo Finance, Backed Finance, Matrixdock, Maple Finance, and Swarm, all participate actively in RWA tokenization.