As per Arkham Intelligence, Ethena Labs has recently augmented its assets by acquiring an extra $225 million worth of BlackRock BUIDL tokens. This action, executed on March 25th, elevates Ethena’s aggregate BUIDL accumulation to an impressive $1.29 billion, thereby reinforcing its standing in the tokenized U.S. Treasury sector.
Central to Ethena’s approach is its USDtb, a yield-generating synthetic dollar. It affords investors access to U.S. Treasury yields while preserving accessibility on the blockchain. Presently, USDtb is supported by $1.4 billion in assets, with 90% consisting of BUIDL tokens, in addition to Tether (USDT) and USD Coin (USDC).
The tokenized U.S. Treasury market is flourishing, boasting an average yield of 4.34% and an overall market valuation of $5.2 billion, according to RWA.xyz. The velocity and effectiveness of blockchain technology are drawing an increasing number of institutional participants to this arena.
BUIDL, formally recognized as the BlackRock USD Institutional Digital Liquidity Fund, was introduced in March 2024 via a collaboration between BlackRock and Securitize. It allocates funds into cash, Treasury bills, and repurchase arrangements to produce USD yields.
With assets surpassing $1.9 billion under management, BUIDL commands the tokenized U.S. Treasury market with a 37% stake. It is surpassing contenders such as Franklin Templeton’s On-Chain U.S. Government Money Fund ($692 million) and Hashnote’s Short Duration Yield Coin ($751 million).
On March 25th, BlackRock and Securitize revealed BUIDL’s broadening to Solana (SOL), rendering it accessible on seven blockchains, encompassing Ethereum (ETH), Aptos (APT), and Arbitrum (ARB). BUIDL is also evolving into a pivotal reserve asset for DeFi applications like Sky (previously MakerDAO).
The convergence of conventional monetary mechanisms and blockchain-based holdings is progressively gaining visibility. Fidelity Investments is proactively gearing up to TruBit Collaborates with Morpho to Introduce DeFi Unearned Revenue in Latin America tokenized U.S. currency market funds and intends to release its proprietary stablecoin.
Fidelity’s actions indicate an expanding pattern of established economic bodies adopting blockchain technology and virtual properties. This might possibly connect the divide between the established and innovative economic spheres, presenting financiers with fresh prospects and effectiveness.”
