BUIDL BlackRock Dominates RWA Tokenization Market

BUIDL BlackRock Dominates RWA Tokenization Market

BlackRock's USD Institutional Digital Liquidity, also known as BUIDL, has surpassed tokenized assets from Franklin Templeton, BENJI, which was the largest real-world asset (RWA) tokenization before BUIDL existed.

BlackRock's BUIDL has now outpaced all other tokenization offerings backed by US Treasury notes, as its supply has increased by 36.5%, rising from US$274 million to US$375 million in April.
Image: Tokenized assets of the US Treasury. Source: RWA.xyz.

On the other hand, BENJI owned by Franklin Templeton in April, according to on-chain analyst Tom Wan, only rose by 2.1% from US$360 million to US$368 million.

On-chain data also indicates that the fund owned by BlackRock is only held by 13 addresses, with Ondo Finance owning 23.68% of the total supply, or 90.43 million BUIDL tokens.

Unlabeled addresses, according to Arkham Intelligence, may be associated with Blackrock, controlling 13.27% or 50.67 million tokens.

To participate in BUIDL through Securitize, a provider of real-world asset tokenization, there is a minimum investment requirement of US$5 million.

BENJI Has Been Around Since 2021

BENJI owned by Franklin Templeton, also known as FOBXX, was released in 2021, making it the first registered fund in the US to utilize public blockchain to enhance transaction processing and share ownership recording. BENJI tokens, based on the Stellar (XLM) and Polygon (MATIC) blockchains, uniquely represent fund shares.

The majority of BENJI tokens, totaling 365.2 million, are on the Stellar blockchain, while 2.1 million are on the Polygon network. BENJI is owned by 404 holders on Stellar, with only two owners controlling the Polygon supply. Leading Stellar-based BENJI accounts hold 29.02% of its supply. The top Polygon account holds 99.99% of the 2.1 million issued.

Conclusion

BlackRock's USD Institutional Digital Liquidity (BUIDL) has emerged as the dominant force in the RWA tokenization market, overshadowing previous contenders like Franklin Templeton's BENJI. BUIDL has not only surpassed BENJI but has also outpaced all other tokenization offerings backed by US Treasury notes, experiencing a remarkable 36.5% increase in supply from US$274 million to US$375 million in April alone. This significant rise in BUIDL's market presence underscores its growing influence and appeal among investors seeking exposure to tokenized real-world assets. Moreover, the concentration of BUIDL ownership among a limited number of addresses, coupled with the substantial holdings by entities like Ondo Finance, further solidifies BlackRock's position at the forefront of RWA tokenization.

The association of unlabeled addresses with BlackRock, as suggested by Arkham Intelligence, adds to the narrative of BlackRock's dominance in this space. Meanwhile, while BENJI pioneered real-world asset tokenization in the US upon its release in 2021, its growth has been comparatively modest, with only a marginal increase in value observed in April.

Despite BENJI's early entry into the market, it now finds itself overshadowed by the rapid ascent of BUIDL. Overall, BlackRock's BUIDL has not only established itself as the frontrunner in RWA tokenization but has also set a high bar for competitors in the burgeoning digital asset landscape. As institutional interest in blockchain-based solutions continues to grow, BUIDL's trajectory signals a paradigm shift in how real-world assets are digitized, traded, and managed.

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