Tokenized Treasuries Dominated: BlackRock BUIDL Secures Massive 41% Share

The world of digital assets is rapidly evolving, and one significant trend is the tokenization of real-world assets (RWAs). Specifically, the market for Tokenized Treasuries has seen remarkable growth, but new data reveals a surprising level of concentration among a few key players. For cryptocurrency enthusiasts and traditional finance observers alike, understanding this dynamic is crucial as this sector expands.

Concentration in the Tokenized Treasuries Landscape

Recent data from RWA.xyz highlights a significant concentration within the tokenized US Treasurys sector. Just six entities are responsible for issuing a vast majority of these assets. This indicates that while the market is growing, it is currently dominated by a select group of funds.

These top six funds collectively account for 88% of all tokenized treasuries issued. This level of concentration suggests that established financial players are quickly capturing market share in this emerging digital asset class.

BlackRock BUIDL Leads the Pack

At the forefront of this concentrated market is BlackRock. Their tokenized US treasury fund, known as BUIDL, holds the largest market capitalization in the sector by a significant margin. As of the latest data, BUIDL’s market cap stands at $2.5 billion.

Here’s a look at the top six funds by market cap:

• BlackRock’s BUIDL: $2.5 billion
• Franklin Templeton’s BENJI: $707 million
• Superstate’s USTB: $661 million
• Ondo’s USDY: $586 million
• Circle’s USYC: $487 million
• Ondo’s OUSG: $424 million

BlackRock’s BUIDL is not just the largest; it’s 360% larger than its nearest competitor, demonstrating its dominant position. This fund alone represents 41.1% of the total tokenized US Treasurys market cap.

Growth Trends and Treasury Market Cap Movements

The overall Treasury Market Cap for tokenized funds has seen substantial growth. According to RWA.xyz data, the total market cap reached a high of $21.3 billion recently. This growth trend has been particularly strong among the leading funds since the beginning of 2025.

BlackRock’s BUIDL has experienced remarkable growth, increasing its market cap by 291% from January 1 to April 24. While most top funds saw growth, Circle’s USYC was an exception, experiencing a decline in market cap during the same period.

Is Centralization a Concern for the RWA Market?

While growth in the RWA Market is promising, some industry voices raise concerns about centralization. Tracy Jin, COO of MEXC, points out a potential ‘dark side’ to the centralization of tokenized assets, especially when they reside on permissioned or semi-centralized blockchains.

Jin notes that issuing assets on such platforms can give authorities the power to restrict or confiscate assets. She emphasizes that the tokenization of assets like real estate or bonds remains tied to national legal systems, adding a layer of complexity and potential control that differs from the decentralized ideals of many cryptocurrencies.

What’s Driving Tokenization‘s Expected Boom?

Despite centralization concerns, the market for Tokenization of real-world assets is widely expected to experience significant growth in the coming years. Several factors are contributing to this optimistic outlook:

• Increasing regulatory clarity providing a more stable environment for asset tokenization.
• Improved interoperability between different blockchain networks and traditional financial systems.
• Development of solutions to enhance liquidity for tokenized assets.
• The evolution of identity verification processes from physical to digital.
• Growing interest in fractional ownership of high-value assets made possible through tokenization.

These drivers suggest that while the current market is concentrated, the underlying technology and use cases for tokenization are gaining traction, potentially leading to broader adoption and new participants in the future.

Summary

The tokenized treasuries market is expanding, but it is currently dominated by a few major players, with BlackRock’s BUIDL holding a significant lead. This concentration, while demonstrating institutional interest, also raises questions about centralization within the broader RWA market, particularly concerning assets issued on permissioned blockchains. Nevertheless, factors like regulatory progress and technological advancements are expected to fuel continued growth in the tokenization space, shaping the future of digital assets and traditional finance convergence.