Investors Sell BlackRock’s BUIDL Fund After a Volatile Weekend

BlackRock, the largest asset manager in the world with over $10 trillion in assets under management, sent $8 million to Ondo Finance on Monday morning to process redemption requests.

According to Arkham Intelligence, BlackRock’s real world asset (RWA) fund BUIDL, has sent nearly $9 million USDC to Ondo Finance this week, and Monday’s $5 million move is their largest transfer with the fund yet.

The funds were sent to Ondo’s OUSGInstant Manager address, which provides liquid exposure to short-term U.S. Treasuries. OUSG introduced instant mint and redemption settlement on May 3, allowing for 24/7 portfolio management. Prior to this, OUSG settlement could take up to a few business days.

When asked about the Monday morning transfers, a Securitize spokesman told The Defiant that the transfer is a redemption.

“The easy subscription and redemption process that allows the customers to move funds in and out in a seamless manner to meet their liquidity requirements,” according to Securitize. “Features like that are why the fund is gaining so much traction.”

In spite of being the leading tokenized treasury fund, the large redemption repayments indicate that the market’s weekend sell-off may have spooked investors.

There was a total of $8.98 million of redemptions transferred to the OUSG wallets over four transactions.

BUIDL, short for the BlackRock USD Institutional Digital Liquidity Fund, is BlackRock’s onchain money market fund built with Securitize for institutional investors. The fund currently sits at an all time high market capitalization of $522 million and accounts for over 25% of tokenized U.S. treasuries according to RWA.xyz.

In January, BlackRock CEO Larry Fink told Bloomberg in an interview “We believe the next step going forward will be the tokenization of financial assets. And that means every stock, every bond.”

In addition to the BUIDL fund, Blackrock also boasts the largest BTC and ETH spot ETFs, with over $20 billion in BTC inflows and $700 million in ETH inflows according to Farside Investors.