MakerDAO’s Spark to invest $500 million in BlackRock’s BUIDL fund

Spark has announced that BlackRock, Superstate, and Centrifuge are the winners of its Tokenization Grand Prix. The goal is to allocate $1 billion in tokenized assets, with BlackRock’s BUIDL fund set to receive half of it.

The competition, launched in July 2024, allocated funds through the Spark Liquidity Layer (SLL). The initiative aimed to integrate real-world assets (RWAs) to diversify Spark’s balance sheet while expanding stablecoin adoption in DeFi. 

The final allocation remains subject to Sky (formerly MakerDAO) governance approval, with a vote scheduled for April 3.

If approved, the initiative will also invest $300 million in Superstate’s USTB and $200 million in Centrifuge-Anemoy Janus Henderson’s JTRSY.

Currently, the Spark Liquidity Layer holds USDC, USDS, sUSDS, USDe, and sUSDe. The protocol will use these stablecoins to add BUIDL, USTB, and JTRSY.

Adding RWAs to the treasury

The competition attracted 39 applications, reviewed by Steakhouse Financial, a firm specializing in RWAs within the Spark ecosystem. 

Applicants were assessed based on pricing transparency, liquidity levels, and strategic alignment with Spark’s objectives. 

Spark picked each of these RWA tokens backed by US Treasury securities, suggesting a preference for liquid and conservative assets.

BUIDL is offered by BlackRock and tokenized by Securitize. The money fund invests in US Treasury bills, repurchase agreements, and cash. 

BUIDL is the largest tokenized money fund, with over $1.2 billion in market cap as of March 18. Spark’s incoming investment could propel it close to $2 billion.

Meanwhile, Superstate’s USTB focuses on short-duration US Treasury bills maturing in six months or less, ensuring a predictable and secure yield. It is significantly smaller than BUIDL, with $370 million participation in the market.

Lastly, Centrifuge-Anemoy Janus Henderson’s JTRSY allocates money to a short-duration US Treasury fund that reinvests in new issuances as existing securities mature. With a market cap of $32.4 million, JTRSY is also the smallest of the three tokenized funds potentially to receive Spark’s investment.

If approved, Spark’s investments in BlackRock/Securitize, Superstate, and Centrifuge will mark a significant step in integrating tokenized RWAs into DeFi infrastructure.

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