Ethena Labs has deepened its presence in the tokenized U.S. Treasuries market, adding another $225 million worth of BlackRock’s BUIDL tokens on March 25, according to data from Arkham Intelligence.
This latest acquisition brings Ethena’s total BUIDL holdings to $1.29 billion, solidifying its influence in the rapidly growing sector.
At the core of Ethena’s strategy is USDtb, its yield-generating synthetic dollar, which provides investors with on-chain exposure to Treasury yields. The token is now backed by $1.4 billion in assets, with BUIDL tokens accounting for 90% of its reserves, alongside Tether (USDT) and USD Coin (USDC), according to data from the platform’s website.
The market for tokenized U.S. Treasuries has surged to $5.2 billion, boasting an average yield of 4.34%, according to RWA.xyz. Institutional interest has been accelerating, driven by blockchain’s ability to enhance settlement efficiency. BlackRock’s BUIDL, officially known as the USD Institutional Digital Liquidity Fund, has been at the forefront of this growth. Launched in March 2024 in collaboration with Securitize, BUIDL invests in cash, Treasury bills, and repurchase agreements, offering U.S. dollar yields on-chain.
BUIDL’s assets under management have surged past $1.9 billion, capturing a dominant 37% share of the tokenized Treasury market. This growth has outpaced competitors such as Franklin Templeton’s On-Chain U.S. Government Money Fund ($692 million) and Hashnote’s Short Duration Yield Coin ($751 million).
In a further expansion, BlackRock and Securitize announced on March 25 that BUIDL is now available on Solana, adding to its existing presence on Ethereum, Aptos, Arbitrum, and other networks. BUIDL is also gaining traction as a reserve asset for decentralized finance (DeFi) applications like Sky, formerly MakerDAO.
Meanwhile, Fidelity Investments is preparing to launch its own tokenized U.S. money market fund and stablecoin, signalling a broader push by traditional finance into blockchain-based assets. The growing participation of major financial institutions underscores the increasing convergence of conventional and decentralized finance.
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