The recent data from asset management services firm 21.co reveals that over $1B of US treasuries are tokenized on public blockchains. The disclosure by the parent company of spot Bitcoin exchange-traded fund (ETF) provider 21Shares coincides with the popularity of tokenization.
The 21.co disclosure reveals that public blockchains support the tokenization of high-yield investments, among them US treasuries now accounting for over $1 billion in assets under management (AUM).
Tokenized US Treasuries Surpass $1 Billion
The data by 21.co reveals that Ethereum and Polygon are among the public blockchains where the US Treasuries are tokenized. Lead data analyst at the company revealed in a late Wednesday, March 27 post that tokenized US Treasuries have tested above $1 billion.
21.co analyst Tom Wan indicated that the tokenized government securities manage over $1.07 billion in assets spread across 17 products.
The Dune Analytics dashboard provided by 21.Co illustrates that the tokenized securities saw the managed assets rise 20% weekly. The niche is led by the Rokenized Government Money Fund by Franklin Templeton, which accounts for 33.6% of the $360.2 million represented by the BENJI token.
Franklin Templeton’s leadership in tokenized securities is unsurprising, given that it pioneered the segment and unveiled the tokenized fund in 2021. Such is represented using the BENJI token available on Polygon and Stellar blockchains.
BlackRock’s BUIDL Resilient Growth to $245 million
Wan reflected on the BUIDL fund by the largest global assets management services provider. The BUIDL fund involves a joint initiative with Securitize and runs on the Ethereum blockchain.
Wan observed that the BUIDL fund had realized historic growth, capturing 22.8% of the market share in a week since its unveiling. Today, it manages over $245 million worth of assets, representing a 400% spike from $40 million seven days ago.
A review of the US Securities and Exchange filing illustrates that BUIDL constitutes a liquid fund that invests in repurchase agreements and treasury bills. The fund targets the short-term borrowing agreements reached by those dealing in government securities.
BlackRock’s BUIDL Earns Legitimacy for Public Blockchains
The BUIDL fund has a native token (BUIDL) that offers a stable value pegged at $1 for each. It pays the qualified investors dividends via tokens representing the US dollar yield.
A leading analyst and brokerage services provider, Bernstein, labeled BlackRock’s tokenized fund as a progressive of the public blockchains. The firm hailed the BUIDL move to leverage the public blockchains as earning them legitimacy rather than utilizing private chains such as JPMorgan’s Onyx.
Tokenized funds are gaining popularity amid the solid recovery realized in the global crypto market. Tokenizing real-world assets is regarded as a critical milestone for the sector, which also sees crypto trading bots such as Code Trader Bot 1000 earn legitimacy.
The scrutiny of the market shows the rest of the market comprises multiple funds, including Ondo Finance, Hashnote, Mountain Protocol, Backed Finance, and Matrixdock. However, Ethereum is the actively utilized public blockchain with Stellar, Polygon, Gnosis, Bas,e, and Avalanche providing the critical infrastructure.
Wan observed that OndoFinance has the largest holding of BUIDL, accounting for 38% of the supply. The analysts observed that such suggests that the BUIDL token entirely backs Ondo’s OUSG.
