The world of decentralized finance (DeFi) is evolving, and when BlackRock set up its BUIDL fund, it sent a clear message.
Traditional finance (TradFi) and DeFi can come together to create new, potentially market-altering financial products. What’s more, BlackRock is exploring the use of DeFi on behalf of real, recognizable assets—like the company’s own tokenized treasuries. This fund is a prime example of an asset manager delving into the DeFi space. And since DeFi prides itself on operating without middlemen, BlackRock’s initiative also begs an important question: How does DeFi work with a massive asset manager calling the shots and using its recognizable assets as surrogates for real DeFi? The answer to that question is unfolding in real time.
Tokenized Treasuries have surged to $4.77B (@RWA_xyz) and BUIDL is leading the way.
“Much of this recent expansion can be credited to the influence of Blackrock’s BUIDL, issued by Securitize, which has become a cornerstone of this transformative trend.” – @BTCTN
— Securitize (@Securitize) March 24, 2025
… The Rise of Tokenized Treasuries
One of the most thrilling happenings in decentralized finance is tokenized treasuries. These tokenized versions of government and corporate bonds, previously confined to traditional, centralized financial systems, are now available to users on blockchain networks.
The move toward tokenization promises to deliver much greater liquidity and transparency in an asset class previously seen as staid and predictable. That could pave the way for a whole new level of accessibility for a much wider range of investors, including those who, until now, have largely been cut out of these remarkable markets.
Tokenized treasuries are something the market has expressed intensive interest in of late. In fact, it appears that everyone from venture capitalists to tech entrepreneurs to asset managers is now rushing toward this new treasury vehicle. And that’s likely not going to ease up any time soon. These tokenized treasuries are designed to approximate the returns of traditional U.S. Treasury securities while providing something else: an on-chain, EVM-compatible asset that the likes of BlackRock and Fidelity can use for по-ситем stakeholders; something that Web3 devs can build with.
Driven by the demand to convert even more traditional assets to the blockchain, many past the architecture of the bond market have now opened up to the transparency benefits of the crypto space. Though unprecedented in how we visualize it, offering tokenized government treasuries over a blockchain in an open market might be our best bet for keeping the fundamentals of democracy intact.
BlackRock’s Influence in the RWA Space
The recent growth in the tokenized treasury market owes a considerable amount to BlackRock’s BUIDL fund. As one of the world’s largest asset managers, BlackRock is an extremely influential player in the space. BUIDL fund is issued by Securitize, a leading digital asset securities platform, and has also been involved with the growth of tokenized treasuries.
BlackRock is present in the RWA space and has transformed it. The BUIDL fund is not just an example of a major financial institution dipping its toes into DeFi; it is the keystone of the movement towards the real-world asset tokenization of the world. As BlackRock continues to pull in more and more holders to the fund, it sends a signal that this is an issue in demand and that the superstructure of combining the security and stability of traditional finance with the efficiency and flexibility of blockchain technology is not going away.
BlackRock’s BUIDL fund, arguably the most iconic example of merging DeFi and TradFi through RWAs, continues to attract more holders, signaling rising demand for these innovative structures. pic.twitter.com/qzQjZvIZxk
— IntoTheBlock (@intotheblock) March 24, 2025
In its brief period on the market, the BUIDL fund has shown that it is possible to create tokens representing traditionally illiquid assets. It has also generated much more interest from other financial institutions and investors in doing the same. That potential was on full display during BlackRock’s earnings call, when top brass insisted that the massive investment firm is “not just a dollar sign” but also a pathway toward real, substantial change.
The Future of DeFi and TradFi Integration
The intensifying success of BlackRock’s BUIDL fund and the ascendancy of tokenized treasuries underscore a crucial movement in the financial world. As DeFi keeps evolving and pulling in institutional players, the line between traditional finance and decentralized finance is getting ever more hazy. Tokenized assets appear set to take up residence as a staple in the financial kitchen, and BlackRock, by all appearances, is the leading cook for making that dish a reality.
Regulatory issues have yet to be resolved, and integrating long-established, traditional financial systems with blockchain technology is no simple feat. Still, this is a freight train with no brakes. The tokenization of real-world assets (RWAs) is barreling ahead toward some as-yet-unknown destination. It’s kind of exciting, really. Look at the potential, for instance, in being able to tokenize everything from a government bond to a corporate treasury note and how that could transform the DeFi and TradFi ecosystems.
The market for tokenized treasuries is growing, and it looks to be a fairly safe bet that more FI’s will follow BlackRock into the space. If anything, the BUIDL fund is forging a path for tokenized treasury bonds to be combined with decentralized finance (DeFi). Financial institutions (FI) that issue treasury bonds usually fall under the category of traditional finance (TradFi). So, the BUIDL fund may be showing the pathway to a future where DeFi and TradFi work together.
To sum up, BlackRock’s BUIDL fund isn’t merely a trend; it typifies the start of a substantial change in the financial sector. By making real-world assets happen through blockchain technology, BlackRock is helping link up old-fi and new-fi, offering something to investors that is closer to cash than conversation. As the market for tokenized RWAs heats up, expect the BUIDL fund to remain at or near the forefront of making something that looks like a global financial system in this space.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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