BlackRock’s Tokenized Money Fund Attracts $245 Million

The assets under management of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) have grown to $244.8 million, according to Etherscan.

The number of token holders has reached seven.

BUIDL is backed by U.S. Treasury bills, REPO agreements, and fiat currency. 

Securitize serves as the tokenization platform, as well as the transfer and listing agent. Anchorage, Coinbase, BitGo, and Fireblocks have joined the initiative as blockchain ecosystem partners, while BNY Mellon will facilitate compatibility with traditional markets. 

According to Bloomberg, at the end of the first week, the AUM amounted to $160 million.

Representatives of Ondo Finance promised to direct a “significant portion” of the assets from their tokenized short-term U.S. Treasury bill instrument, ticker OUSG, into BUIDL.

Ondo Finance CEO Nathan Allman stated in an interview with CoinDesk that OUSG “will become more convenient” thanks to instant 24/7 subscriptions and redemptions.

Previously, the product was based on BlackRock’s iShares Short Treasury Bond ETF, which traded only during traditional market hours. Settlements for buying/selling shares were conducted on a T+2 basis.

“Many investors were hesitant to use OUSG due to the time typically required for redemption. They also considered the 24/7 and volatile nature of digital assets, which often leads to a sudden need for capital. OUSG will become significantly more suitable as a means of capital protection and collateral in the crypto ecosystem,” explained Allman.

Amid the news, the daily growth rate of the ONDO token increased to 8.2%, according to CoinGecko. Over the past 30 days, the asset has appreciated by 107.3%.

Earlier, Bernstein assessed the prospects of BUIDL.

Back in March 2024, Goldman Sachs’ head of digital assets, Matthew McDermott, noted the growing interest of TradFi representatives in tokenization.