Shortly after the introduction of BlackRock's inaugural tokenized asset fund, BUIDL, which joined 16 other tokenized government securities funds last week, a new milestone was achieved. More than $1 billion worth of United States Treasurys now exists across Ethereum, Polygon, Solana, and various other blockchains, partly propelled by the recent debut of the BlackRock USD Institutional Digital Liquidity Fund.

The BlackRock product, known as "BUIDL," debuted on Ethereum on March 20 and has swiftly amassed a market cap of $244.8 million. Four transactions totaling $95 million to the fund over the week provided a notable boost, positioning it as the second-largest tokenized government securities fund. Currently, BUIDL follows behind Franklin Templeton’s Franklin OnChain U.S. Government Money Fund (FOBXX), which holds $360.2 million in U.S. Treasurys.

Data compiled by the parent firm of 21Shares on a Dune Analytics dashboard reveals that $1.08 billion in U.S. Treasurys has now been tokenized across 17 products.

In the most recent deposit to BlackRock’s fund, totaling $79.3 million, real-world asset tokenization firm Ondo Finance played a pivotal role. This deposit, executed across four transactions, allows for instant settlements for Ondo Finance's U.S. Treasury-backed token, OUSG. Ondo Finance now holds a 38% share in BUIDL.

BUIDL's value remains pegged 1:1 with the United States dollar and distributes daily accrued dividends directly to investors each month. The fund was launched on Ethereum through the Securitize protocol.

Describing tokenized government treasuries as more attractive from both risk and return perspectives compared to stablecoin yields in the current high-interest rate environment, 21.co outlines these observations in its Dune dashboard.

BlackRock CEO Larry Fink has recently expressed that blockchain tokenization could enhance capital markets' efficiency, a sentiment echoed by Boston Consulting Group, which estimates blockchain tokenization to become a $16 trillion market by 2030.

U.S. Treasurys represent just a fraction of the assets that can be tokenized, with stocks, real estate, and various other assets also viable candidates.

Additionally, Ethereum accounts for $700 million of all real-world assets tokenized on-chain. Franklin Templeton’s FOBXX is tokenized on Stellar and Polygon, which rank second and third in terms of market share for tokenized products at $358 million and $13 million, respectively. Noteworthy firms like WisdomTree and blockchain-native entities such as Ondo Finance, Backed Finance, Matrixdock, Maple Finance, and Swarm are actively engaged in this burgeoning space.