Ethena Drives BlackRock’s BUIDL Growth, Dominating Tokenized Treasury Market

• Ethena drives BUIDL growth.
• Dominance in the tokenized market.
• USDtb backed by BUIDL.

Ethena Labs has been responsible for 95% of the growth in investment giant BlackRock’s U.S. Treasury tokenized fund BUIDL over the past three weeks, according to information shared by Ethena Labs founder Guy Young on X. The move highlights the company’s crucial role in expanding the market for tokenized real-world assets (RWAs).

The BUIDL fund has been experiencing parabolic growth recently, surpassing the $1 billion mark in assets under management (AUM). In a scenario where Ethena Labs is responsible for an allocation of $200 million, equivalent to more than 60% of this amount, the issuer of the synthetic dollar USDe has been significantly driving the adoption of BUIDL as a reserve asset for its stablecoin USDtb, launched in December 2024.

“Stablecoin issuers decide where demand for these treasury products will sit at scale, Ethena holds >60% of BUIDL alone and has accounted for over 95% of BUIDL growth over the past three weeks,” he wrote.

Young's statement came in response to news that asset manager Fidelity is planning to issue its own tokenized fund on Ethereum.

Stablecoin issuers decide where the demand for these treasury products will sit at scale, Ethena holds >60% of BUIDL alone and accounted for 95%+ of the growth in BUIDL in the last three weeks

— G | Ethena (@leptokurtic_) March 23, 2025

It is worth noting that USDtb is backed by tokenized treasury funds, and BlackRock’s BUIDL represents more than 70% of its reserve assets. Ethena’s dominance in BUIDL growth underscores the importance of stablecoins in the adoption of tokenized treasury products.

Blockchain Converge: DeFi and TradFi Revolution Led by Ethena and Securitize

At a time when the tokenization of real-world assets (RWA) is gaining more and more prominence in the industry, Ethena Labs and Securitize announced , on March 17, the launch of Converge, a layer-1 blockchain compatible with the Ethereum Virtual Machine (EVM). The initiative aims to create a bridge between traditional finance (TradFi) and decentralized finance (DeFi) by offering a unified platform for tokenized assets and digital dollars.

“Our vision is to provide the first purpose-built settlement layer where TradFi will merge with DeFi, centered on USDe and USDtb and secured by ENA,” he highlighted.

With a developer testnet set to launch soon and mainnet deployment expected in Q2025 XNUMX, Converge aims to redefine financial interactions by offering a platform that serves both retail and institutional investors.