The Crypto Roundup: 09 July 2024 |

The Crypto Roundup: 09 July 2024 |

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BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has hit a new milestone, becoming the first tokenized treasury fund to surpass $500 million in market capitalization.

Launched less than four months ago, BUIDL has become the world’s largest tokenized treasury fund, with $502.8 million worth of tokenized U.S. Treasuries according to blockchain data.

BlackRock’s fund dethroned the Franklin OnChain U.S. Government Money Market Fund (BENJI) as the largest tokenized treasury fund in late April, just six weeks after its launch. BUIDL’s price is pegged directly to the U.S. dollar and offers daily interest accrued dividends to investors, leveraging a partnership with real-world asset tokenization firm Securitize to do so.

The rise of BUIDL is fueled in part by firms like Ondo Finance, which utilizes BUIDL as collateral for its own digital token, OUSG, and has become the largest holder of BUIDL with $173.7 million in holdings. Stablecoin issuer Mountain Protocol, for example, also holds BUIDL to back its yield-bearing stablecoin USDM.

The total market capitalization for tokenized treasury funds currently sits at around $1.67 billion, with Ethereum serving as the dominant blockchain for these instruments. Real-world assets tokenized on blockchains including not only U.S. Treasuries, but also stocks and real estate.

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