Exclusive Interview

  • 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 too early.


BlackRock's BUIDL Fund Breaks $2.5 Billion: The On-chain Tokenization Boom and the Institutional-led Concentration Trend. On April 25, 2025, BlackRock launched the on-chain tokenization fund - BlackRock USD Institutional Digital Liquidity Fund (BUIDL), managing assets that have reached $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 just four wallet addresses, highlighting the highly concentrated nature of this fund. 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 astonishing growth and concentration characteristics of BUIDL have made it the world's largest tokenized treasury fund since its launch in March 2024 in collaboration with the tokenization platform Securitize. As of April 2025, its assets under management (AUM) have surged from an initial $288 million to $2.5 billion, with the total value locked (TVL) growing 31% in the past month, demonstrating strong market demand.

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

This high concentration is closely related to BUIDL's design objectives. Securitize's 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 'democratized investment.' This high threshold ensures that only high-net-worth or institutional investors can participate, leading to capital concentration in the hands of a few large players.

Institution-led Tokenization Trend

The success of BUIDL is not only a strategic layout by BlackRock in the Web3 space but also a reflection of the fusion between traditional finance (TradFi) and decentralized finance (DeFi). The following factors have driven its rapid growth:

Reasons and Challenges of High Concentration

The capital concentration of BUIDL reflects the early phase characteristics of the on-chain tokenization market. Sonnenshein describes it as 'the second half of the first game.' The following 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. Furthermore, the returns of tokenized funds are not registered with the SEC, leading to regulatory uncertainty.

Trends in Securitize's Cooperation with Traditional Private Equity

Securitize is not only a partner of BUIDL but has also collaborated with traditional private equity giants like Apollo and KKR to launch on-chain funds, with investment thresholds between $20,000 to $50,000, targeting high-net-worth investors. These funds maintain a high threshold for entry, but compared to BUIDL, it is slightly lower, 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 primarily cater to institutions and high-net-worth groups, still 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 expected 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 limitations of the current market.

Conclusion: Institutional Frenzy and Retail Waiting

BlackRock's BUIDL has a scale of $2.5 billion, with 80% of the funds concentrated in four 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 the Crypto Relief Fund demonstrates the intersection of traditional finance and crypto-native forces, while Securitize's collaboration with Apollo and KKR signals the entry of broader asset management giants. However, the high threshold and characteristics of concentration 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 to inclusivity will still take time.