A week ago BlackRock unveiled its BlackRock USD Institutional Digital Liquidity Fund (BUIDL), a money market fund that aims to offer a stable $1 value. One week on, BUIDL has attracted $245 million in assets from seven investors. Ondo Finance, which previously tokenized BlackRock ETF funds, has shifted $95 million into the BUIDL fund and makes up 38% of its value.
Two other investors have $50 million a piece, one has $35 million and four have $5 million.
While BlackRock looks like competition for Ondo Finance, the move probably makes sense for both parties. Previously, if someone wanted to redeem the Ondo tokenized money market fund (OUSG) they had to wait because traditional securities settlement takes two days. With the latest move, Ondo says it will soon be able to offer instant investment and redemption 24/7/365.
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