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  • BlackRock's BUIDL fund is highly concentrated.
    BlackRock's BUIDL fund is highly concentrated.

  • Private equity giants are moving into the space.
    Private equity giants are entering the field.

  • It's early days, says Securitize exec Michael Sonnenshein.
    Securitize executive Michael Sonnenshein says it's still early days.


BlackRock's BUIDL fund surpasses $2.5 billion: The on-chain tokenization boom and institution-led concentration trend. On April 25, 2025, BlackRock launched its on-chain tokenization fund - the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which has reached an asset management scale of $2.5 billion, marking an important milestone for traditional financial giants in the blockchain field. However, on-chain data shows that about 80% of the funds are concentrated in only 4 wallet addresses, highlighting the fund's highly concentrated characteristics. This article will delve into the success of BUIDL, reasons for concentration, the composition of major holders, and the current state and future trends of the on-chain tokenization market. The remarkable growth and concentration characteristics of BUIDL since its launch in March 2024 through a partnership with the tokenization platform Securitize have rapidly made it the world's largest tokenized treasury fund. As of April 2025, its assets under management (AUM) have surged from an initial $288 million to $2.5 billion, with a 31% increase in TVL (total locked value) over the past month, demonstrating strong market demand.

On-chain data shows that the funding distribution of BUIDL is highly concentrated:

This high concentration is closely related to BUIDL's design goals. Securitize COO Michael Sonnenshein points out that BUIDL is positioned as an institutional product, with a minimum investment threshold of $5 million (for individual investors) or $25 million (for institutional investors), clearly not aiming for 'democratizing investment'. This high threshold ensures that only high-net-worth or institutional investors can participate, leading to funds being concentrated in the hands of a few large players.

Institution-led tokenization trends

The success of BUIDL is not only BlackRock's strategic layout in the Web3 field, but also a microcosm of the integration of traditional finance (TradFi) and decentralized finance (DeFi). Several factors have driven its rapid growth:

Reasons and challenges of high concentration

The concentration of BUIDL's funding reflects the characteristics of the early stage of the on-chain tokenization market. Sonnenshein describes it as 'the second half of the first game'. Here are the main reasons for concentration and potential challenges:In terms of challenges, high concentration may bring liquidity risks and centralization controversies. If major holders (such as Ethena) redeem large amounts of assets due to market fluctuations or protocol risks, it may trigger a chain reaction. In addition, the returns of tokenized funds are not registered with the SEC, leading to regulatory uncertainty.

Securitize's collaboration trend with traditional private equity

Securitize is not only a partner of BUIDL but also collaborates with traditional private equity giants such as Apollo and KKR to launch on-chain funds, with investment thresholds ranging from $20,000 to $50,000, targeting high-net-worth investors. These funds continue the model of high entry barriers, but are slightly lower than BUIDL, indicating a slow expansion of the tokenization market to a broader range of qualified investors.

For example, Apollo and KKR may leverage blockchain to enhance the liquidity of private equity or credit assets, but their products still focus on high-net-worth clients rather than retail investors. This indicates that in the short term, on-chain tokenization will still be dominated by institutions and high-net-worth groups, far from the goal of 'democratization'.

Future outlook: The potential and bottlenecks of tokenization

BlackRock CEO Larry Fink has stated that tokenization is a 'key force in reshaping financial infrastructure,' and it is estimated that the global tokenization market could reach $16 trillion by 2030. The success of BUIDL validates this potential, but its high concentration and institutional orientation also expose the current market's limitations.

Conclusion: Institutional frenzy and retail waiting

BlackRock's BUIDL fund has a scale of $2.5 billion, with 80% of funds concentrated in 4 addresses, clearly outlining the current state of the on-chain tokenization market: institution-led, rapidly growing but still in its early stages. The participation of Ethena, Spark Protocol, and Crypto Relief Fund showcases the intersection of traditional finance and crypto-native forces, while Securitize's collaboration with Apollo and KKR signals a broader entry of asset management giants. However, the high barriers and centralized characteristics mean that ordinary investors still need to wait for the 'democratization' moment of the tokenization market.

For crypto investors, the rise of the RWA sector (Ondo, Ethena, etc.) provides indirect participation opportunities, but caution is needed regarding market volatility and regulatory risks. The 'financial highway' of on-chain tokenization is being paved, but the exit toward inclusivity will still take time.