BlackRock’s BUIDL fund has reached a notable milestone, surpassing $2.1 billion in assets under management on the Ethereum blockchain as of April 11. This rapid growth reflects rising investor interest in blockchain-based financial products despite ongoing market volatility.
Ethereum currently accounts for about 90.5% of the total BUIDL tokens issued across seven supported blockchains, underscoring the network’s dominant role in the fund’s tokenization strategy. Recent weeks have witnessed sharp acceleration in the fund’s size, which surged from approximately $500 million to over $2 billion, notably coinciding with unsettling market conditions prompted by ongoing international trade tensions.
As financial markets experienced significant turbulence, driven largely by escalating trade-war tensions, investors began shifting toward safer financial assets, notably U.S. treasury bonds and similar yield-generating instruments. BlackRock’s BUIDL fund, which provides yield exposure through tokenized U.S. treasuries via blockchain-based securities, has directly benefited from this pivot in investor preferences.
Adding to its appeal, treasury yields rose significantly on April 11, with the 10-year U.S. Treasury yield climbing by 13 basis points. While global economic uncertainty triggered waves of anxiety in traditional bond markets—in particular, abroad—these rising yields have increasingly captured the attention of domestic investors, further accelerating interest in blockchain-facilitated instruments like BUIDL.
This success also highlights the expanding acceptance and growing role of blockchain solutions within traditional finance. BUIDL tokens differ distinctly from typical cryptocurrencies or altcoins; they are explicitly defined and regulated as securities, requiring investors to adhere to stringent know-your-client (KYC) requirements for trading and ownership. These securities offer investment returns from treasury-backed income streams while employing blockchain’s unique advantages—including instantaneous settlement, transparent record-keeping, and streamlined compliance provided by automated smart contracts.
In leveraging blockchain technology to modernize and streamline traditional financial securities, BlackRock’s BUIDL fund exemplifies how Wall Street’s leading institutions increasingly acknowledge and integrate blockchain innovations into their product strategies, setting a precedent for further industry adoption.
