BlackRock's $245 Million Tokenized Treasury Fund Takes Off as Digital Asset Market Booms

BlackRock's tokenized fund BUIDL quickly attracted $245 million in deposits in its first week, making it the second largest behind Franklin Templeton's $360 million fund.

U.S. Treasuries are seen as a gateway for real-world asset tokenization, with crypto firms and banks rushing to put bonds and other instruments on blockchain.

The tokenized U.S. Treasury market has grown 9 times in the past year to $100 million; analysts predict it will hit $1 billion soon.

BUIDL is targeted to institutional investors and pegged to $1, providing a yield from the underlying U.S. Treasuries paid in the token.

Ondo Finance moved $95 million to BUIDL, shifting backing from an ETF to allow instant, 24/7 subscriptions and redemptions.