Injective Enables Traders to Bet On Growth of BlackRock's BUIDL Fund

Injective, a Layer 1 blockchain with $37 million in total value locked, is launching a tokenized index to provide exposure to BlackRock’s USD Institutional Digital Liquidity Fund, known as the BUIDL Fund.

Injective created a perpetuals market based on the BUIDL Index, which tracks the supply of the BUIDL fund rather than its price. Investors can take long, short, and leveraged positions in the fund. Trading is available on Injective’s decentralized exchange, Helix.

The BUIDL fund holds short-term U.S. Treasury bills. It was created by BlackRock, is brokered by Securitize, and runs on the Ethereum blockchain. Each BUIDL token is worth $1, and investors receive a monthly payout based on their holdings. The fund is only available to accredited investors with a minimum of $5 million to invest.

Injective uses Real World Asset (RWA) oracle technology, launched in January after the Volan Mainnet Upgrade. Injective has also partnered with Stork, a decentralized price feed provider, to deliver up-to-the-millisecond data, crucial for tracking the BUIDL token supply, the company said.

“The launch of the BUIDL Index showcases the sheer potential of Injective’s infrastructure in being able to truly bring traditional finance onto fully decentralized rails,” said Eric Chen, co-founder and CEO of Injective Labs. “For the first time, institutions and retail users alike can gain direct access to a novel RWA offering that tracks the actual fund spearheaded by BlackRock.”

At the time of writing, INJ was up 7% in the last 24 hours, trading at $17.14. INJ has a market cap of $1.6 billion.

BUIDL’s Growth

BUIDL has emerged as the leading U.S. Treasuries fund, managing $517 million in assets, according to Dune data shared by 21.co.

Launched in March, the fund surpassed the half-billion mark in less than four months, with firms like Ondo Finance acquiring more of BlackRock’s BUIDL to back its OUSG token.

In comparison, Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX), the second-largest tokenized treasury fund, has accumulated $402 million in assets since its launch in April 2021. Ondo Finance’s USD Yield fund (USDY) ranks third, with $304 million in assets after going live last August. Overall, more than $1.98 billion is currently locked in on-chain Treasury funds, reflecting a 150% growth since the beginning of the year.

Ethereum hosts 74% of these on-chain tokenized treasuries, followed by Stellar with 20%, while Solana accounts for 2%. The remaining 6% share is distributed among other blockchains like Gnosis, Avalanche, Base, Polygon, and Mantle.