Tom Wan: BlackRock's BUIDL asset management reached $375 million in April, surpassing Franklin Templeton's BENJI

21.co strategist Tom Wan made the following remarks on the X platform:
BlackRock BUIDL surpassed Franklin Templeton's BENJI (FOBXX) as the largest on-chain money market fund in terms of assets under management, with BUIDL growing 36.5% monthly from $274 million to $375 million and BENJI growing only 2.1% monthly from $360 million to $368 million.
2. Demand is key to tokenization, and currently, there is limited demand for tokenized stocks, funds, or bonds. Even if end point investors are cryptocurrency natives, they are reluctant to invest in tokenized stocks given the scarcity of liquidity, and issuers do not see the obvious benefits of tokenizing assets on chains where demand is low.
3. US Treasury positioning tokenization. As mentioned earlier, the key issue of tokenization is to channel demand and liquidity. Given the existing demand for US Treasuries in the cryptocurrency space, such as Ondo (~ $350 million), stablecoin issuers such as Circle/Tether/Mountainprotocol (140 billion USD), it is easier to find end point investors to switch over. This is also a good strategy for Blackrock. Ondo is now the largest holder of BUIDL
4. Prediction: The dominance of tokenized government securities will increase from 1% to 10%. In January 2023, tokenized government securities will account for only 0.1% of the total tokenized value. Today, it accounts for~
1.4%. In my opinion, stablecoin issuers using BUIDL would be the next natural step, potentially becoming a reserve fund for crypto assets, currently holding stablecoins above $20 billion.