The world of blockchain finance is witnessing a pivotal shift as traditional financial giants accelerate their entry into the tokenized asset space. At the forefront of this transformation is BlackRock’s BUIDL, a tokenized U.S. Treasury fund that has rapidly gained traction, with assets under management (AUM) approaching $1.5 billion. This surge underscores a growing institutional embrace of real-world asset (RWA) tokenization—a trend now being amplified by Fidelity’s strategic move into the blockchain-based fund arena.
BlackRock’s BUIDL Dominates the RWA Landscape
BlackRock’s BUIDL fund has emerged as a flagship example of how legacy financial institutions are leveraging blockchain to modernize asset management. Launched in March 2024 on the Securitize platform, BUIDL crossed the $1 billion AUM threshold within just one year—a remarkable pace in the evolving digital asset ecosystem.
Recent data from RWA.xyz reveals that BUIDL’s AUM has surged by nearly 129% over the past 30 days alone, reaching $1.4 billion. This explosive growth reflects not only strong investor confidence but also increasing demand for regulated, yield-bearing digital assets backed by real-world instruments.
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Blockchain Distribution and Investor Adoption
While BUIDL is now available across multiple blockchains, Ethereum remains its dominant network. Over 86.46% of the fund’s supply—amounting to more than $1 billion—is issued on Ethereum, highlighting the network’s continued role as the primary infrastructure for institutional-grade tokenized assets.
Additional deployments on Avalanche and Aptos each account for approximately $56 million (about 3.6% of total supply), with smaller portions hosted on Ethereum Layer-2 solutions such as Polygon, Arbitrum, and Optimism. This multi-chain strategy enhances accessibility and scalability while maintaining regulatory compliance and operational efficiency.
Investor participation has also expanded significantly. The number of unique holders has increased by 19% in the past month, now totaling 62. Though this figure may seem modest compared to retail crypto projects, it reflects high-net-worth individuals and institutional clients engaging with a regulated, compliant product—marking a critical step toward mainstream adoption.
Market analysts interpret these developments as evidence of deepening trust in blockchain-based financial instruments and a clear signal of institutional interest in tokenizing traditional assets like bonds and credit products.
Fidelity Steps Into the Tokenization Arena
As BlackRock solidifies its lead, Fidelity Investments is entering the RWA race with its own blockchain-powered initiative. The asset management giant recently filed with the U.S. Securities and Exchange Commission (SEC) to launch an on-chain version of its Treasury money market fund under a new share class named “OnChain.”
This innovative structure will utilize blockchain technology as both a transfer agent and settlement layer, aiming to streamline operations, reduce counterparty risk, and enable near-instant settlement—key advantages over traditional financial systems.
According to the SEC filing:
“The OnChain class of the fund currently uses the Ethereum network as the public blockchain. In the future, the fund may use other public blockchain networks, subject to eligibility and other requirements that the fund may impose.”
This development aligns with a broader industry trend: major financial institutions are increasingly adopting blockchain to tokenize bonds, funds, private credit, and other income-generating instruments. The benefits are clear—enhanced transparency, 24/7 settlement capability, improved liquidity, and lower operational costs.
The Broader Momentum Behind RWA Tokenization
Despite a relatively sluggish performance in broader crypto markets—with Bitcoin down 11% year-to-date—RWA tokenization has demonstrated resilient and sustainable growth throughout 2025.
On-chain metrics reveal that the total market capitalization for tokenized real-world assets has grown by 18.29% in the last 30 days, now standing at $19.23 billion. Equally telling is the rise in user adoption: the number of RWA holders has increased by 5%, nearing 91,000 globally.
Market Leaders and Asset Composition
Within the RWA ecosystem, BlackRock’s BUIDL leads by market capitalization. It is followed by Hashnote’s USDY at $784 million and Tether Gold (XAUT) at $752 million—both representing stablecoins backed by interest-bearing instruments and physical gold, respectively.
In terms of underlying asset classes:
- Private credit dominates the sector with $12.2 billion in AUM, reflecting strong demand for alternative yield sources.
- U.S. Treasuries account for $4.76 billion, underscoring their role as a safe-haven asset in digital form.
This diversification illustrates how tokenization is expanding beyond speculative crypto assets into income-generating, real-economy-backed instruments—appealing to risk-averse investors and institutions alike.
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Frequently Asked Questions (FAQ)
Q: What is BlackRock’s BUIDL?
A: BUIDL is a tokenized U.S. Treasury fund launched by BlackRock in March 2024 via Securitize. It offers investors exposure to short-term U.S. government securities through blockchain-based tokens, combining traditional fixed income with digital asset efficiency.
Q: How does Fidelity’s OnChain fund work?
A: Fidelity’s OnChain share class uses blockchain—currently Ethereum—as a settlement and transfer layer for its Treasury money market fund. This allows for faster processing, greater transparency, and potential integration with decentralized finance (DeFi) ecosystems.
Q: Why are real-world assets (RWAs) gaining popularity in crypto?
A: RWAs provide tangible value backing, regulatory clarity, and stable yields—addressing volatility and trust issues common in native crypto assets. They bridge traditional finance with Web3, attracting institutional capital.
Q: Is BUIDL available on multiple blockchains?
A: Yes, BUIDL is deployed across several chains including Ethereum (where most supply resides), Avalanche, Aptos, Polygon, Arbitrum, and Optimism—enabling flexibility and interoperability.
Q: What role does Ethereum play in RWA tokenization?
A: Ethereum serves as the primary blockchain for most institutional tokenization efforts due to its robust smart contract capabilities, security track record, and extensive ecosystem support.
Q: Are individual investors able to participate in these tokenized funds?
A: Access is currently limited to accredited or institutional investors due to regulatory requirements. However, expansion to broader investor bases may occur as frameworks evolve.
Final Thoughts: The Future of Finance Is On-Chain
The rapid ascent of BlackRock’s BUIDL and Fidelity’s entry into blockchain-based funds mark a turning point in financial innovation. As real-world asset tokenization gains momentum, we’re witnessing the foundation of a new financial infrastructure—one that blends regulatory compliance with technological efficiency.
With over $19 billion now locked in tokenized assets and major players leading the charge, the shift toward on-chain finance is no longer speculative—it’s structural.