BlackRock’s BUIDL Token Surpasses $1 Billion Milestone

Global asset manager BlackRock‘s BUIDL token, issued in partnership with Securitize and backed by U.S. Treasuries, crossed the $1 billion milestone in assets on Thursday, according to Securitize.

A $200 million allocation by crypto protocol Ethena pushed the fund’s size above this threshold, a Securitize spokesperson told CoinDesk. Ethereum blockchain data from Arkham Intelligence shows an entity minting $200 million worth of BUIDL tokens at Thursday 18:47 UTC.

Crypto tokens backed by U.S. Treasuries are leading the charge in tokenization efforts, with digital asset firms and major financial institutions racing to transfer traditional instruments like bonds, private credit, and funds onto blockchain. This aims to enhance faster settlements and operational efficiency.

BUIDL serves as a crucial building block for various yield-generating offerings and is increasingly used as collateral across trading platforms.

For instance, BUIDL is a vital reserve asset for Ethena’s yield-generating USDtb token, which now boasts a $540 million supply. This token’s value is backed by USDC and USDT stablecoins, along with approximately $320 million worth of BUIDL tokens.

Guy Young, founder of Ethena, stated, “Ethena’s decision to scale USDtb’s investment in BUIDL reflects our deep conviction in the value of tokenized assets and their significant role in future financial infrastructures.”

Read more: Tokenized Treasuries Hit Record $4.2B Market Cap as Crypto Correction Fuels Growth