Examples of Tokenized Assets from Institutions
One of the most significant adoption trends in the crypto world is Tokenized Assets, which has been gaining strong attention especially among major institutions and corporations. This sector is expected to grow massively in the future, as tokenization enables 24/7 markets and makes real-world assets more accessible globally without borders.
A prime example is BlackRock, one of the largest players in the financial industry, managing over $10 trillion in assets. BlackRock has stepped into the tokenization space by launching the BUIDL Fund, which now has more than $2 billion worth of tokenized assets under management.
The BUIDL Fund is a Money Market Fund (MMF) a traditional money market product brought onto the blockchain through tokenization. It offers daily interest payments and is fully backed 1:1 by real-world assets, serving as a key bridge between TradFi (traditional finance) and DeFi (blockchain-based finance).
What are Tokenized Money Market Funds?
MMFs typically consist of low-risk assets such as U.S. Treasury bonds and cash. When tokenized, they become digital tokens representing a single unit of investment.
Advantages of Tokenized MMFs:
Lower entry threshold: Investors can purchase fractional shares of the fund.
Automated and transparent: Smart contracts handle interest payments, compliance checks, and withdrawals.
Collateral for DeFi: Tokens can be used as collateral within decentralized finance protocols.
Direct, daily interest payments: Interest is credited straight to investors’ wallets, with all transactions verifiable 24/7.
How does BlackRock’s BUIDL Fund work?
Institutional investors purchase BUIDL tokens (only Qualified Purchasers using whitelisted wallets and passing KYC/AML checks).
BlackRock issues a traditional MMF investing in U.S. Treasury bonds and cash.
Securitize tokenizes the fund shares into BUIDL tokens on Ethereum.
Investors receive and hold BUIDL in their personal wallets, allowing them to earn Monthly interest or use the tokens as collateral or in DeFi protocols.
The underlying MMF assets are custody by leading providers such as Anchorage, Coinbase, BitGo, and Fireblocks.
To redeem in USDC, investors use the Circle USDC redemption contract, which executes atomic on-chain settlement, giving immediate USDC. To redeem in USD fiat, investors send BUIDL tokens to Securitize, which burns the tokens, calculates the USD value, and transfers real dollars to the investor’s bank or custodian account.
Who can invest?
Only Qualified Purchasers (minimum investment approximately $5 million)
Must pass KYC/AML verification
Must use whitelisted wallets
Registered with the U.S. SEC
Summary
BUIDL is not just a standard MMF. It is a real-world example of how blockchain can integrate with traditional finance, providing fast, transparent, and verifiable interest from U.S. Treasuries 24/7. It represents a significant milestone in the crypto market, demonstrating how major institutional players are bringing huge moneys and assets onto the blockchain.