BlackRock tokenized treasuries top $900M AUM

TLDR

BlackRocks tokenized US Treasury fund has grown to over $900 million on-chain, marking a major milestone for institutional real?world assets in crypto.

1. BlackRocks BUIDL fund on Avalanche doubled from about $464 million to over $900 million in a week, and is now the largest tokenized Treasury product on-chain.
2. Across all supported blockchains, BUIDL holds roughly $2.87 billion in tokenized Treasuries, making Avalanche a major RWA venue alongside Ethereum.
3. This growth signals accelerating institutional adoption of tokenized debt, with yields, access limits, and DeFi integrations becoming key things to watch next.

Deep Dive

1. What Grew And Where

BlackRocks USD Institutional Digital Liquidity Fund (BUIDL), a tokenized US Treasury money market fund, saw its Avalanche allocation jump from about $464 million to over $900 million in seven days, a 105 percent weekly increase, according to RWA data.

On Avalanche, that makes BUIDL the largest tokenized Treasury product and the biggest real?world asset (RWA) on the network, as highlighted in coverage of the funds surge. Each BUIDL token targets one dollar per share and accrues daily dividends from a portfolio of short?term US Treasuries, cash, and repos.

Avalanche now holds the second?largest share of BUIDL after Ethereum, with the Avalanche allocation representing nearly one third of the funds roughly $2.87 billion total tokenized Treasuries across chains.

2. Why It Matters For Crypto

Tokenized real?world assets, especially sovereign debt, are emerging as a new collateral and yield layer for crypto markets. Total tokenized RWAs on-chain have passed $30 billion, with tokenized Treasury products alone around $17 billion, per broader market analysis of stablecoins and RWAs.

BUIDL fits this pattern: it offers a roughly 3.4 percent seven?day annualized yield with management fees in the 0.20 to 0.50 percent range, while maintaining a regulated fund structure administered by BNY Mellon, as detailed in tokenization?focused reporting. Legal rights remain those of traditional fund shares, but ownership and transfers move onto blockchains, similar to other tokenized sovereign debt infrastructure.

Avalanches tokenized asset market is now about $2.10 billion, with BUIDL alone accounting for roughly 43 percent of that, underscoring how a single institutional product can reshape a chains economic profile.

3. What To Watch Next

BlackRock launched BUIDL initially on Ethereum and has expanded it to Aptos, Arbitrum, Avalanche, Optimism, Polygon, Solana, and BNB Chain, giving it multi?chain reach that could influence capital flows and DeFi design across ecosystems. On Avalanche, a wrapped version, sBUIDL, is already used as collateral on Euler, letting eligible users borrow USDC or AUSD against tokenized Treasuries, according to RWA fund documentation.

Important caveat: this is still an institutional product. Access is restricted to a small set of approved investors (around 113 wallets), with transfer controls and eligibility checks. Liquidity and risk remain shaped by traditional fund gates, not fully permissionless DeFi.

Key signals to monitor include further AUM growth, new DeFi integrations for BUIDL and similar products, any loosening or tightening of access rules, and whether other large asset managers follow BlackRock into tokenized Treasuries at similar scale.

Conclusion

BlackRocks tokenized Treasury fund crossing $900 million AUM on-chain, and nearly $3 billion across networks, marks a structural step toward integrating traditional sovereign debt into cryptos settlement and collateral rails. The move concentrates significant yield?bearing RWAs on chains like Avalanche and Ethereum, and the next phase will hinge on how far this institutional layer connects into broader DeFi while balancing regulation, liquidity, and access.