BlackRock’s tokenized U.S. Treasury fund, BUIDL, has surpassed $1 billion in assets under management following a $200 million allocation from Ethena.
Data from RWA.xyz shows that BlackRock BUIDL fund’s total assets have grown 57% in the past month following Ethena’s (ENA) $200 million allocation on Mar. 13. The fund, which was introduced in partnership with Securitize, exposes investors to cash, repurchase agreements, and U.S. Treasuries.
BUIDL was first developed on Ethereum (ETH) but has since expanded to Aptos (APT), Arbitrum (ARB), Avalanche (AVAX), and Optimism (OP) using the Wormhole (W) bridge. Its tokenized assets are managed by custodians such as Anchorage Digital, BitGo, and Fireblocks, while cash and securities are managed by BNY Mellon.
In December of last year, Ethena unveiled USDtb, a stablecoin intended to complement Ethena USDe (USDe), its synthetic currency. Mainly backed by BUIDL, USDtb has rapidly increased in supply. Because USDtb produces yield in contrast to conventional stablecoins, it has gained the appeal of investors seeking passive income.
Beyond BlackRock and Ethena, more firms are joining the tokenized Treasury trend. Ondo (ONDO) Finance’s OUSG and USDY products have surged 53% in value over the past month, nearing a combined $1 billion in valuation. At the same time, major prime brokers like FalconX now accept tokenized Treasuries, including BUIDL, as collateral for leveraged trades.
This shift reflects a rise in institutional trust in financial products based on blockchain technology. According to RWA.xyz data, the total tokenized Treasury market has grown rapidly, reaching $4.4 billion in assets as of Mar. 14. The industry expanded fourfold in the last year, with demand rising following the U.S. election in November.
Analysts suggest that instead of holding non-yielding stablecoins, investors are increasingly moving toward direct Treasury exposure in order to access yield, which currently stands at an average of 4.28%.
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