BlackRock Inc.'s tokenized BUIDL fund on the Avalanche blockchain doubled its assets under management to $900 million in the span of seven days, marking the fastest growth spurt for any institutional-grade tokenized fund since the product class emerged.
BlackRock Inc.'s tokenized BUIDL fund on the Avalanche blockchain doubled its assets under management to $900 million in the span of seven days, marking the fastest growth spurt for any institutional-grade tokenized fund since the product class emerged.
The fund, which invests in short-term U.S. Treasury bills and repurchase agreements, reached $900 million in AUM as of July 12, up from $450 million the prior week, according to data from the Avalanche ecosystem dashboard. The doubling represents the single largest weekly inflow into a tokenized real-world asset fund, surpassing the prior record set by Ondo Finance's USDY product in March.
"Tokenized Treasuries are solving a real distribution problem — institutions want on-chain yield without leaving the regulatory perimeter," Jason Wu, head of DeFi research at crypto analytics firm TokenFlow, said. "BUIDL's growth on Avalanche specifically reflects the subnet architecture that lets BlackRock control its own validator set while settling on a public blockchain."
The BUIDL fund, launched in March 2024 on Ethereum before expanding to Avalanche, Avalanche's C-Chain, and Solana, now holds roughly $900 million across all chains, with the Avalanche deployment accounting for the entire $450 million weekly increase. Avalanche's subnet architecture allows the fund to process transactions with sub-second finality while maintaining compliance controls, a feature BlackRock has cited as critical for regulated asset tokenization.
The acceleration in inflows comes as the broader tokenized Treasury market has swelled to $4.2 billion across all blockchains, up from $780 million a year ago, according to rwa.xyz data. Ethereum still hosts the largest share at $2.1 billion, but Avalanche has captured 21% of the market, trailing only Ethereum and Stellar. The concentration of capital on Avalanche reflects the chain's focus on institutional-grade infrastructure, including its Evergreen subnet program designed specifically for regulated financial institutions.
Why Avalanche is winning RWA flows
Avalanche's architecture differs from Ethereum's in a way that matters for regulated asset issuers. The network's subnet model lets institutions deploy their own application-specific blockchains that settle to the Avalanche Primary Network, giving them control over validator selection and gas fees while maintaining interoperability with the broader Avalanche ecosystem. BlackRock's BUIDL deployment uses this model, running on a dedicated subnet that only whitelisted validators can operate.
The competitive pressure on Ethereum is becoming measurable. While Ethereum's total value locked remains dominant at $58 billion, its share of tokenized RWA AUM has declined from 68% to 50% over the past six months as capital migrates to Avalanche, Solana, and Stellar for institutional tokenization products. Avalanche's native token AVAX has gained 12% over the past week to $24.80, outperforming ETH's 3% decline over the same period, CoinGecko data shows.
What comes next for tokenized Treasuries
The runway for further growth depends on two variables: interest rate policy and regulatory clarity. If the Federal Reserve cuts rates later this year as markets currently price in, the yield advantage of tokenized Treasuries — currently offering 4.8% to 5.2% — would narrow relative to traditional money market funds. However, the structural demand for on-chain collateral in DeFi lending protocols and derivatives markets provides a use case that exists independent of the yield level.
BlackRock has not disclosed plans to expand BUIDL to additional chains, but the fund's rapid growth on Avalanche suggests the firm is testing which blockchain infrastructure can handle institutional scale. The next milestone to watch is whether BUIDL crosses the $1 billion threshold — a level that would make it the largest tokenized fund by AUM, surpassing Franklin Templeton's BENJI product at $980 million.
This article is for informational purposes only and does not constitute investment advice.
