Tokenized treasuries on Avalanche double to $900M

TLDR

BlackRocks BUIDL tokenized U.S. Treasury fund on Avalanche has jumped from about $464 million to over $900 million in a week, sharply expanding on-chain treasuries there.

1. BUIDLs Avalanche allocation doubled to more than $900 million, now making it the largest tokenized treasury product on-chain and a flagship real world asset on Avalanche.
2. Avalanches tokenized asset market is around $2.10 billion, so BUIDL alone is roughly 40 percent of its RWAs, putting Avalanche just behind Ethereum for this fund.
3. The key things to watch are whether flows stay concentrated in Avalanche, how DeFi collateral use grows, and how interest rates and regulation influence further treasury tokenization.

Deep Dive

1. What Actually Doubled

BlackRocks USD Institutional Digital Liquidity Fund (BUIDL) is a tokenized money market fund investing in short term U.S. Treasuries, cash, and repos, with shares issued as on-chain tokens. According to recent reporting, BUIDLs position on Avalanche rose from about $464 million to over $900 million in seven days, a 105 percent weekly increase, based on RWA.xyz data cited by crypto.news.

BUIDLs total value across all supported networks is about $2.87 billion, with the Avalanche slice now close to one third of the fund. Each token targets a net asset value of 1 dollar per share and pays daily accrued dividends, giving on-chain investors a familiar cash-like, yield-bearing instrument wrapped in token form.

2. Avalanches RWA Position

Avalanches broader tokenized real world asset value is around $2.10 billion, up more than 58 percent over 30 days, and BUIDL accounts for roughly 43 percent of that distributed asset value on the network, per RWA metrics cited in the same coverage. That makes BUIDL not just a large fund, but the single dominant RWA on Avalanche.

Globally, tokenized U.S. Treasuries have grown from about 380 million dollars in 2023 to roughly 13.4 billion dollars by April 2026, and then to around 17 billion dollars by June, according to combined RWA and CoinsKid community data on tokenized Treasuries. Avalanche is now one of the leading chains in this segment, sitting alongside Ethereum and a handful of others.

3. What To Watch Next

BlackRock and Securitize have not detailed who drove the recent Avalanche inflows, so the jump may reflect a few large institutional allocations rather than broad retail demand. That concentration means network level RWA statistics are sensitive to decisions around a single product.

On the DeFi side, sBUIDL, a token backed one to one by BUIDL and issued by Securitize, is already accepted as collateral on Euler, letting eligible users borrow assets like USDC or AUSD against their holdings, as noted in Avalanche RWA coverage. Future growth will hinge on how widely such collateral is integrated and whether more tokenized debt and equity products join BUIDL on Avalanche.

Risk wise, these tokens are claims on a regulated fund with transfer controls, not free bearer Treasuries, so access, liquidity gates, and interest rate moves all matter for anyone treating them as digital cash.

Conclusion

The doubling of tokenized treasuries on Avalanche to about 900 million dollars shows that institutional scale tokenization is no longer theoretical, it is reshaping one chains asset mix in real time. Avalanche now leans heavily on a single BlackRock product for its RWA footprint, which is powerful for credibility but raises concentration and policy risk. Whether this becomes a durable yield backbone or a transient allocation will depend on continued inflows, broader diversification into other RWAs, and how well Avalanches DeFi ecosystem can turn these tokenized treasuries into useful, liquid collateral.