Bitcoin price returned to $64,600 along with Apple and MicroStrategy earnings reports. While short-term fluctuations are important for most investors, bigger things are happening. For example, BlackRock‘s work in the RWA space and its continued growth are crucial for the future of both Ethereum and crypto.
BlackRock and BUILD
US bonds are seen as the safest investment haven and the most easily liquidated asset. Moreover, you can easily convert billions of dollars worth of bonds into cash. Therefore, stablecoin issuers in the crypto space also hold bonds as reserves for dollar-pegged stablecoins.
MakerDAO, Tether, and Circle have massive bond reserves. If Tether were a country, it would be the 18th largest holder of US bonds. The figure is that significant. We frequently mention the potential in the RWA space and the ongoing work there. Tokenizing real-world assets includes bonds. Many giants, from China’s largest state bank to BlackRock, issue bonds on the Ethereum network.
The world’s largest asset manager BlackRock‘s bond RWA initiative BUILD reached over $500 million in size in a very short time. If it can make deals with MakerDAO and other potential clients, the figure could quickly exceed $2 billion. Such rapid growth and earning potential make it imperative for BlackRock to explore this area.
So who benefits from this? It benefits the entire crypto ecosystem in the long run as it merges crypto with traditional finance. Additionally, since bonds are issued on the Ethereum network, it also benefits the altcoin king.
BUILD Dividend Payments
According to Tom Wan, tokenized US bonds could see $3 billion in inflows by the end of the year. The US Dollar Institutional Digital Liquidity Fund (BUIDL) is the strongest alternative here and was launched in March 2024. In just months, it paid a total of $7 million in dividends. The continuously increasing dividend payments climbed from $265,400 in March to $2.12 million in July.
Goldman Sachs recently announced it would introduce three new tokenized products in 2024. With interest from BlackRock, Franklin, Chinese banks, and Goldman, crypto is receiving top-level attention, and long-term interest in the RWA space seems likely to benefit cryptocurrencies significantly.
