Stablecoins: Institutional Integration
- info122712
- Jan 5
- 3 min read
Stablecoins are rapidly becoming a core component of institutional financial infrastructure, largely because they operate on a 24/7, 365 basis. Unlike traditional financial rails that are constrained by banking hours, settlement windows, and geographic limitations, stablecoins allow capital to move continuously with near-instant finality. As a result, stablecoins are increasingly viewed not just as payment tools, but as programmable cash designed for modern markets.
Major asset managers are now actively deploying capital on blockchain infrastructure, signaling a clear move toward tokenized finance. A notable example is BUIDL, BlackRock’s on-chain money market fund, which demonstrates how traditional financial products can be issued, settled, and managed directly on public blockchains.
Blackrock Buidl
The BlackRock USD Institutional Digital Liquidity Fund, known as BUIDL, is the world’s first large-scale tokenized money market fund issued on public blockchains. It is structured to seek current income consistent with liquidity and principal stability by investing in traditional cash equivalents such as U.S. Treasury bills, cash, and similar short-duration instruments, while issuing ownership in token form on blockchain networks like Ethereum and Solana. At the time of writing, it currently has a market capitalization of 1.7B.
Qualified institutional investors can subscribe to and trade BUIDL tokens, which remain pegged to a $1 value while paying daily dividends reflective of underlying yields. Because BUIDL is tokenized, it benefits from instant settlement, transparent on-chain transferability, and broader accessibility. Further, it can be exchanged for USDC 24/7 365 - permitting liquidity on demand.
The product represents a major step in bridging traditional finance with blockchain infrastructure by bringing regulated, yield-bearing institutional assets on-chain, and highlights growing institutional adoption of digital financial products.
Franklin Templeton
Franklin Templeton’s BENJI token represents a digitized share of the Franklin OnChain U.S. Government Money Fund (FOBXX), a regulated U.S. money market fund invested primarily in government securities, cash, and fully collateralized repurchase agreements. Each BENJI token equates to one share of the fund, with its ownership and transferability recorded on public blockchain networks while maintaining the underlying legal and regulatory framework of a traditional mutual fund. The market capitalization, at the time of writing, is currently 825mm.
The product offers the familiar principal stability and daily yield generation associated with money market funds, combined with faster settlement, real-time transparency, and on-chain transferability that traditional mutual funds cannot provide. Its development marks a meaningful step toward broader institutional participation in on-chain investment instruments while preserving regulatory integrity and yield-bearing characteristics.
Other Notable Asset Managers:
Beyond BlackRock and Franklin Templeton, a growing group of established asset managers and financial institutions are actively shaping the real-world asset tokenization landscape.
Key players include:
WisdomTree, which is developing tokenized fund and ETF structures.
Fidelity Investments has expanded into digital assets and on-chain financial products.
Apollo Global Management, which has issued tokenized credit products through regulated tokenization platforms.
Securitize plays a central role by enabling compliant on-chain issuance for multiple institutional managers.
JPMorgan has developed a private enterprise blockchain, Onyx, for international remittance between their clients.
BNY Mellon is supporting tokenized funds and settlement infrastructure.
Together, these firms highlight that RWA tokenization is no longer experimental, but an emerging institutional standard built around regulated products and blockchain-native settlement.
