MUSD holders will earn month-to-month yields derived from BUIDL’s investments in U.S. treasuries.
The layers of synergy between DeFi and tradfi are deepening.
On June 27, Manta introduced that wUSDM, a yield-bearing stablecoin from Mountain Protocol, is now backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), the Ethereum-based tokenized U.S. treasuries fund from the world’s largest asset supervisor, BlackRock.
“Manta Network is proud to be one of the early adopters of the BUIDL Fund by supporting its backed assets through the on-chain yield-bearing stablecoin,” Manta mentioned. “This marks a new chapter in the long-term growth and security of all holders of wUSDM.”
USDM beforehand invested its belongings in U.S. Treasury payments immediately. USDM at the moment ranks because the Twenty fifth-largest stablecoin with a market cap of $47.1 million, in accordance with CoinGecko.
BlackRock, a agency managing $9.1 trillion in belongings below administration (AUM), launched its BUIDL fund on March 20. The deployment served as a significant vote of confidence in each on-chain finance and the Ethereum community.
“This is the latest progression of our digital assets strategy,” mentioned Robert Mitchnick, BlackRock’s Head of Digital Property. “We are focused on developing solutions in the digital assets space that help solve real problems for our clients.”
All of BUIDL’s assets are invested in cash, U.S. Treasury bills, and repurchase agreements, providing shareholders with a low-risk and steady source of yield. The fund’s tokenized shares offer a stable value of $1 each, with the fund paying out daily accrued dividends on a monthly basis in the form of additional tokens.
BUIDL rapidly emerged as the largest tokenized treasuries fund, overtaking Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX) — which went live in April 2021 — within seven weeks of launching with $375 million, according to Rwa.xyz.
BUIDL continues to lead the sector with $481.8 million in AUM, accounting for 27% of the on-chain treasuries sector’s $1.77 billion market cap. The capitalization of on-chain treasuries is up 130% since the year began.
Multiple DeFi protocols on the Manta network support USDM, allowing users to access additional yields on top of BUIDL’s dividends.
Manta is currently the 10th-largest Layer 2 network by total value locked with $643.2 million, according to L2beat.
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