The rise of real-world asset (RWA) tokenization has entered a new era, and at the center of it all is BlackRock — the world’s largest asset manager. After making headlines with its spot Bitcoin ETF that raised over $13 billion, BlackRock has now turned its attention to on-chain finance with the launch of **BUIDL**, its tokenized digital liquidity fund. Within just seven days, BUIDL attracted more than **$240 million** in assets, signaling strong institutional and ecosystem confidence in blockchain-based finance.
This surge didn’t just benefit traditional investors — it triggered a wave across the RWA sector, with projects like Ondo Finance emerging as major beneficiaries. The ONDO token spiked over 130% following the announcement, reflecting broader market excitement about the future of tokenized U.S. Treasuries and institutional-grade on-chain assets.
But what exactly is BUIDL? And why is it reshaping the landscape for retail and institutional players alike?
What Is BlackRock’s BUIDL Fund?
Launched on March 20 in partnership with Securitize, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) is a tokenized money market fund built on the Ethereum blockchain. Managed directly by BlackRock Financial Management, Inc., BUIDL invests primarily in cash, U.S. Treasury bills, and repurchase agreements — offering a secure, yield-generating vehicle for qualified investors.
Each BUIDL token represents $1 USD in underlying value and is issued to accredited investors who meet compliance requirements. These tokens can be transferred between verified wallets through Securitize’s compliance layer, ensuring regulatory adherence while enabling seamless on-chain movement.
Key Use Cases for BUIDL
According to Carlos Domingo, CEO of Securitize, BUIDL serves three core purposes:
- For crypto-native firms seeking to manage treasury funds on-chain without sacrificing yield or security.
- As underlying collateral for other RWA protocols building financial products.
- As a high-quality alternative to stablecoins, usable as collateral in DeFi lending and trading markets.
While yields from staking or holding BUIDL aren’t currently registered with the SEC — meaning platforms may not list them as “interest-bearing” assets — the fund's structure reflects a cautious but progressive step toward regulated on-chain finance.
BUIDL’s Rapid Growth and Market Position
Nearly one month after launch, BUIDL has amassed $286.35 million in total assets under management, according to data from 21.co on Dune Analytics. It now ranks second only to Fidelity’s BENJI fund on Stellar, underscoring rapid adoption among institutions.
But perhaps most notably, Ondo Finance has emerged as BUIDL’s largest known holder. Shortly after the fund’s debut, Ondo allocated over $95 million into BUIDL — representing more than 33% of its initial capitalization. This strategic move positions Ondo at the heart of the RWA ecosystem, leveraging BlackRock’s credibility and yield infrastructure.
On April 1, BUIDL made its first dividend distribution to eight investors. One of the recipients was an Ondo-linked address (0x72B...63D), which received over 70,000 BUIDL tokens — a clear sign of active participation and integration.
Just two days later, Ondo conducted what appears to be a redemption test, transferring 250,000 BUIDL tokens to Securitize’s address (0x878...200) before they were sent to a burn address. This trial run suggests Ondo is preparing for full operational integration — including future redemptions and liquidity management.
Why BUIDL Matters for the RWA Ecosystem
BUIDL isn’t just another tokenized fund — it's a bridge between Wall Street and Web3. By bringing trusted asset management practices onto Ethereum, BlackRock has created a highly liquid, compliant, and yield-generating asset class that other protocols can build upon.
For RWA projects like Ondo, this means they no longer need to manage complex off-chain custodial structures or source Treasuries independently. Instead, they can use BUIDL as a plug-and-play yield layer, reducing operational overhead and increasing trust.
Ondo, for example, recently updated its OUSG product — a tokenized U.S. Treasury fund — to hold BUIDL as its primary underlying asset. This shift simplifies compliance, improves capital efficiency, and enhances transparency for end users.
And unlike older RWA models that relied on standalone SPVs (Special Purpose Vehicles) with slow redemption cycles, BUIDL enables near-instant transfers between verified parties — making it far more attractive to DeFi-native users who expect speed and flexibility.
Estimated Yield: Competitive Edge in DeFi
Although BlackRock hasn’t officially disclosed BUIDL’s APY, early dividend payouts suggest an annualized yield of approximately 5.3% — outpacing many existing RWA treasury products and rivaling top-tier DeFi stablecoin vaults.
This yield advantage, combined with BlackRock’s brand reputation and regulatory diligence, makes BUIDL a compelling choice for protocols aiming to offer safe, high-quality returns.
ONDO: A Gateway for Retail Access to RWAs?
Despite growing interest in RWA tokenization, access remains limited — especially for retail investors in regions like China and Southeast Asia. Many RWA products impose strict KYC requirements or restrict participation to accredited investors only.
This is where ONDO stands out. While Ondo Finance has evolved into a leading RWA protocol with over $1.98 billion in assets across its products (ranking third in the sector), the ONDO token itself predates this transformation.
Crucially, owning ONDO doesn’t require direct access to regulated funds. Instead, it offers indirect exposure to the growth of the entire RWA ecosystem — particularly as Ondo integrates high-performing assets like BUIDL into its offerings.
For millions of global investors locked out of traditional RWA products due to geographic or compliance barriers, ONDO may represent one of the few viable entry points into this trillion-dollar emerging market.
Frequently Asked Questions (FAQ)
What is BUIDL by BlackRock?
BUIDL is a tokenized money market fund launched by BlackRock in collaboration with Securitize. It invests in short-term U.S. Treasuries and cash equivalents, offering daily yield to qualified investors via Ethereum-based tokens pegged to $1 USD.
Who can invest in BUIDL?
Only accredited or institutional investors who pass KYC/AML verification through Securitize can participate. The fund is not available to general retail investors at this time.
How did Ondo benefit from BUIDL?
Ondo Finance became the largest known holder of BUIDL within a week of launch, allocating over $95 million. This boosted confidence in Ondo’s strategy and drove significant price appreciation in the ONDO token.
Can you earn yield from holding BUIDL?
Yes, holders receive daily dividends based on fund performance. However, these yields are not currently registered with the SEC, so exchanges may not display them as “interest.”
Is ONDO a good investment for RWA exposure?
ONDO provides indirect exposure to tokenized real-world assets like U.S. Treasuries through products such as OUSG. Given its early mover status and integration with major players like BlackRock, it remains one of the most accessible ways for retail investors to gain RWA exposure.
Will more traditional finance giants enter the RWA space?
Absolutely. BlackRock’s move validates the long-term potential of asset tokenization. With Fidelity, Franklin Templeton, and others already active in this space, broader institutional adoption is expected to accelerate throughout 2025.
The Road Ahead: RWAs Go Mainstream
BlackRock’s BUIDL is more than a successful product launch — it's a signal that institutional capital is ready to embrace blockchain technology when backed by trust, compliance, and yield.
As more protocols integrate BUIDL and similar instruments, we’re likely to see a new generation of hybrid financial products emerge — combining the best of TradFi stability with DeFi innovation.
And for retail users still waiting for their chance to participate? Projects like Ondo Finance are paving the way — turning once-inaccessible markets into globally tradable digital assets.
👉 Stay ahead of the next wave in finance — see how real-world assets are transforming DeFi.