BlackRock’s tokenized Treasury fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), grew its market cap by $52.1 million in a single 24-hour period. This growth reinforces its position as a dominant player in the tokenized US Treasury market, which currently holds between $15 billion and $16 billion in total on-chain value. BUIDL commands a significant portion of this sector, with a market cap generally ranging from $2.5 billion to $2.7 billion.
Launched in March 2024, BUIDL crossed $500 million in assets under management by mid-2024, distributed over $100 million in cumulative dividends by late 2025, and surpassed the $2 billion mark by late 2026. The fund maintains a net asset value of approximately $1 per token, offering daily yield accrual between 3% and 5% APY. Its underlying assets consist of short-term US Treasuries and cash equivalents settled on-chain around the clock.
While traditional money market funds operate within standard market hours and settle on T+1 timelines, BUIDL provides instant settlement at any hour. This feature supports institutional investors managing liquidity across global portfolios.
Data from Token Terminal indicates that BUIDL’s expansion is part of a wider surge across tokenized Treasury products. However, the sector still faces constraints, including relatively low utilization within decentralized finance (DeFi) lending protocols and increasing competition from other issuers such as Franklin Templeton and Ondo Finance.
