BlackRock’s BUIDL leads market cap growth among tokenized Treasury products
RWA Signal Insight
U.S. TreasuriesBlackRock’s USD Institutional Digital Liquidity Fund, known as BUIDL, recently experienced a $52.1 million market cap increase within a single 24-hour period. This growth highlights the accelerating institutional demand for on-chain yield products that offer 24/7 liquidity. Launched in March 2024, BUIDL has become the benchmark for the tokenized U.S. Treasury sector, which now holds between $15 billion and $16 billion in total on-chain value. By maintaining a net asset value of approximately $1 per token and providing daily yield accrual, the fund addresses the settlement inefficiencies inherent in traditional T+1 Treasury products. The fund has already distributed over $100 million in cumulative dividends and surpassed $2 billion in assets under management by late 2026. While BUIDL dominates the space, competitors like Franklin Templeton and Ondo Finance are also expanding their presence across various blockchain ecosystems. Despite this rapid adoption, the tokenized Treasury market remains a small fraction of the $6.7 trillion traditional U.S. Treasury market, indicating significant room for future growth.
Key points
- BUIDL market cap grew by $52.1 million in a single 24-hour period.
- Total tokenized U.S. Treasury market value currently ranges between $15 billion and $16 billion.
- BUIDL has distributed over $100 million in cumulative dividends since its March 2024 launch.
- Tokenized Treasuries offer 24/7 instant settlement, bypassing traditional T+1 market hour constraints.
Background
BUIDL is a tokenized fund managed by BlackRock that invests in short-term U.S. Treasuries and cash equivalents. It operates as a regulated vehicle that allows institutional investors to hold and transfer assets on-chain, providing a digital alternative to traditional money market funds.