May 1, 2024 - Business

BlackRock tokenized fund overtakes Franklin Templeton

BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin OnChain U.S. Government Money Fund (FOBXX) are neck and neck. Data: rwa.xyz Chart: Axios Visuals

The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) surpassed Franklin Templeton's OnChain U.S. Government Money Fund (FOBXX) in market cap terms just yesterday, according to research platform rwa.xyz.

  • BlackRock turned heads when it partnered with a digital asset firm to launch a tokenized money market fund on the Ethereum blockchain in March. Just weeks later, that fund has become the largest.

The big picture: Overall the tokenized treasury market, at $1.3 billion, remains small compared to the $160 billion enjoyed by stablecoins.

Flashback: BlackRock partnered with Securitize Markets to put real world assets onchain, starting out with a treasury fund for qualified purchasers. Within days, it had $100 million in assets.

  • Franklin Templeton, however, was the first to put a registered mutual fund on-chain, according to the firm.

Of note: Not many addresses hold the BUIDL tokens, just 13, according to rwa.xyz.

  • Franklin Templeton's fund has the second most associated wallet addresses overall, at 404, per the research firm, just behind Ondo U.S. Dollar Yield fund's (USDY), 836.

Behind the scenes: BlackRock made a minority investment in Securitize as part of their partnership, and BlackRock's global head of strategic partnerships Joseph Chalom joined Securitize's board, per the Wall Street Journal in March.

  • Securitize said the firm led its $47 million fundraising round just today, referencing that investment made at BUIDL's launch.

The bottom line: Tokenizing real world assets is a work in progress, but the entry of big firms like BlackRock appears to be at least accelerating the pace of the category's growth — BUIDL is 30% of the overall category.

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