BlackRock's 'Tokenized Municipal Bond Fund' Receives Warm Response.

Ritu13

BlackRock's first-tier tokenized asset fund is off to a strong start, capturing a significant market share in the blockchain-based tokenized U.S. Treasury market just one week after its listing.

Blockchain data shows that BlackRock's BUIDL has attracted $245 million as of Wednesday (27th). According to data from rwa.xyz, the fund's issuance is strong, jumping to second place in managed funds, second only to Franklin Templeton's Franklin OnChain U.S. Money Market Fund (FOBXX), which manages $360 million.

In the wave of tokenizing real-world assets, BlackRock is the latest high-profile participant, with major banks such as HSBC, JPMorgan, and Citigroup, as well as digital asset companies exploring the use of blockchain technology to tokenize traditional financial instruments such as bonds, credits, and gold to pursue faster settlement and increased efficiency.

U.S. Treasuries are a major "starting point" for tokenized assets because they are low-risk and well-known investment tools. Investors can park their on-chain funds in tokenized treasuries and earn stable returns in the blockchain ecosystem. The tokenized treasury market has grown rapidly in the past year, increasing ninefold from $100 million at the beginning of 2023.

Tom Wan, an analyst at digital asset management company 21Shares, said, "With BUIDL growing, we may soon see a $1 billion tokenized U.S. Treasury market."

BlackRock's BUIDL token on the Ethereum blockchain is created through the asset tokenization platform Securitize. Investing in this fund represents holding U.S. Treasuries with repurchase agreements, priced at $1 pegged to the underlying assets, and holders can earn returns from the underlying assets in the form of tokens. This product is aimed at large institutional investors.
RWA tokenization platform Ondo Finance has transferred $95 million to BUIDL to move its own tokenized U.S. Treasury assets from less-than-ideal ETF funds to the blockchain, allowing for instant settlement and 24/7 subscription and redemption.

977Iti

That's a substantial amount of capital inflow indeed.

Iravan774

This is also a significant amount of capital inflow.