Tokenized treasurys are ‘growing way faster than stablecoins:’ Securitize CEO

Securitize CEO Carlos Domingo thinks BUIDL will potentially hit its next $500 million milestone in just a few months

article-image

Securitize CEO Carlos Domingo | DAS 2022 New York by Blockworks

share

Earlier this week, BlackRock’s BUIDL crossed $500 million — a milestone never before reached by a tokenized money market fund.

Tokenized funds have really taken off in the last few years, Securitize CEO Carlos Domingo told Blockworks. BlackRock and Securitize launched BUIDL earlier this year. 

However, only some investors can access the fund. Qualified investors with more than $5 million in assets can subscribe through Securitize. 

So what has led to this growth?

The rise of stablecoins is definitely a factor, because it made folks think about what else could be tokenized, Domingo said. 

Read more: Circle debuts way to trade BlackRock tokenized fund shares for USDC

Right now the total value of the tokenized treasurys market, which includes BUIDL, sits at $1.8 billion. Domingo wouldn’t be surprised to see that market cap top $2 billion soon.

While the market is obviously far smaller than the $160 billion stablecoin market, “it’s definitely growing way faster than stablecoins.”

“Keep in mind, stablecoins are easier to purchase and use because they’re permissionless, while tokenized treasurys are securities. So they have some restrictions in terms of who can purchase them, how you can transfer them, etc. So they’re never going to be — in my opinion — as big as stablecoins…but I think they can easily become 10% to 20% of the market of stablecoins,” he said.

While the rest of the industry was no doubt buoyed by the launch of the bitcoin ETFs earlier this year, Domingo thinks the two have operated in “parallel paths.”

“The way I see it is: You’re taking a Web3 asset, which is bitcoin, and you put it on the [traditional finance] world through an ETF. Rather, I think tokenization is the opposite. You’re taking a [traditional finance] asset and you put it on the crypto — on the Web3 space — through tokenization. So they are like two distinct things that are very valuable but have nothing to do with each other,” he said.

Domingo discussed the conversations he’s been having with others in the space, noting that they’ve intensified since the launch of BUIDL.

“Every single asset manager out there is thinking about how they can participate,” he told me. Which is perhaps not surprising, given the appetite for BUIDL. 

But that success isn’t only reserved for BlackRock

According to rwa.xyz, Franklin Templeton’s fund, FOBXX, which was launched in April of last year, has topped $400 million — a 16% increase over the past 30 days. BUIDL, to put it in perspective, saw a nearly 9% jump in the same time period. 

A look at the biggest funds in the space. Credit: Securitize.

But Domingo thinks that BUIDL’s next $500 million could come even quicker — the fund just launched four months ago. Part of that may be because of some “new features,” he teased. Some will be unveiled in just a few weeks. 

There’s also the fact that, because of the nature of the fund, there can be a bit of a delay when trying to subscribe to it. 

He added, “In terms of onboarding entities, which — because these are institutions — takes time…for them to be able to invest in BUIDL. But we have a very big pipeline of entities being onboarded [so] that once they’re on board, they will invest, right?”

The success of BUIDL has led to discussions between BlackRock and Securitize about future projects. Domingo said that both firms are very aware that they’re only four months into BUIDL, so nothing else is coming at this point. 

Read more: How the latest TradFi blockchain trial could mark the ‘five-yard-line’ for mass adoption

“So things take a longer time than [it would] take if we were working with a startup, which is fine because also you get the credibility of BlackRock…I think that in the next few months, we’re going to focus more on growing BUIDL in terms of the utility of the token, the functionality and the integration with all the parts of the ecosystem, rather than launching a new project,” he said. 

But despite the desire to grow while working with a “small company” (Domingo says Securitize has 150 employees currently), he said that his firm isn’t looking to raise further funds any time soon. In May, ICYMI, BlackRock led a nearly $50 million round for the firm. 

“We need to execute on what we have. We have plenty of money. We were not raising money when BlackRock came. We already had money in the bank. So it’s not that we needed the money…I think that raising money [has] been a massive distraction to me, particularly, because you talk to a lot of people, and at this point in time, I don’t want to raise more money,” Domingo said.

A shorter version of this article first appeared in Thursday’s Empire Newsletter. Sign up here to never miss an issue.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Featured.png

Research

Helium stands at a pivotal moment in its evolution as a decentralized wireless network, balancing rapid growth, economic restructuring, and global expansion. With accelerated growth in domestic DAUs and Hotspots supporting its network, Helium is leveraging strategic partnerships and innovative proposals to scale internationally. The recent implementation of HIP 138, “Return to HNT,” has unified its token economy under HNT, simplifying participation and strengthening liquidity, while HIP 139’s phase-out of CBRS refocuses efforts on scalable Wi-Fi offload. Meanwhile, governance shifts under HIP 141 raise questions about centralization as Nova Labs consolidates control over the roadmap.

article-image

The DeFi Education Fund has ideas on how the crypto-friendly SEC can bring Commissioner Peirce’s vision to life

article-image

“Be prepared to do more with less,” Framework Ventures’ Michael Anderson said

article-image

Q1 may have been “frustrating,” but things are looking brighter for Q2

article-image

Tokens worth 20% of the current supply of the TRUMP memecoin launched by the president are set to be unlocked tomorrow

article-image

A crypto-industry lawsuit is “moot” now that Joint Resolution 25 has been signed into law

article-image

Fed Chair Powell assured markets that the labor market is in “good place,” dependent on price stability