BlackRock’s BUIDL Nears $3B, Registers 3x Increase in Less Than 90 Days

Cryptocurrency

Summary:

According to rwa.xyz data, BUIDL’s size is $2.89 billion as of June 11. It is the largest tokenized money fund, representing 40% of the $7.34 billion market.

BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) expanded by about $1 billion between March 26 and June 11, representing roughly half of the $2 billion growth of the tokenized US treasuries market in the period.

According to rwa.xyz data, BUIDL’s size is $2.89 billion as of June 11. It is the largest tokenized money fund, representing 40% of the $7.34 billion market.

The March 26 benchmark is significant because it’s when Ethena Labs stopped adding the fund shares to back its USDtb stablecoin. USDtb drove most of BUIDL’s growth in 2025, channeling 90% of its reserves into the fund, totaling $1.3 billion.

Consequently, the significant 35% growth in less than three months without Ethena’s boost suggests continuing demand for regulated, high-yield cash instruments on public blockchains.

Accelerated growth of tokenized treasuries

Furthermore, the fund has grown by nearly three times since it reached $1 billion on March 13, achieving this milestone in just over a year.

However, it took less than 90 days to triple the amount, suggesting a spike in interest in real-world asset (RWA) tokenization, especially tokenized US treasuries.

According to rwa.xyz’s overview, the RWA market grew by nearly $5 billion between March 13 and June 11. The tokenized US treasuries market represented almost half of the global RWA market growth.

As shared on June 12 by ETF Store CEO Nate Geraci, BlackRock recently published its effort to bridge the traditional capital markets “with the developing digital assets ecosystem,” currently focusing on tokenized funds.

Dividend streak reaches a third monthly record

Alongside asset growth, BUIDL’s income distributions continued to set new highs. The fund paid$4.17 million in March, pushing cumulative payouts above $25 million.

April dividends rose to about $7.9 million, lifting lifetime payments past $33 million, according toissuer posts.

May distributions exceeded $10 million, bringing total dividends to more than $43 million since inception. This represented the third consecutive monthly record.

Source: Cryptoslate

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Manuel

Political

Central Bank

A Republican senator’s plan to take away the Federal Reserve’s power to pay banks interest on cash they park on central bank books could cause chaos for monetary policy implementation if it were implemented, market participants said.

In recent days, Senator Ted Cruz of Texas has been speaking about this power and his desire to see it ended as part of what he views as an effort to save money by the federal government.Stripping the Fed of the longstanding power would save the government $1 trillion, Cruz said in a CNBC interview last week. The senator said then that he did not know if it was likely his effort would work but that it was certainly possible.

On Wednesday, Bloomberg reported that Cruz had also lobbied President Donald Trump, who has long been at odds with the Fed, as well as Republican colleagues, about his idea. “We’re agonizing trying to find a $50 billion cut here and there. This is over a trillion dollars, big dollars in savings,” Cruz told Bloomberg, saying of the payments, “half of it is going to foreign banks, which makes no sense.”

Cruz’s office did not respond to a request for comment. The Fed declined to comment.

Cruz's effort is being treated cautiously by Senator Tim Scott, the Republican from South Carolina who chairs the Senate Finance Committee. "While the desire to return to pre-crisis monetary policy operating procedures is understandable," the matter must be considered under normal Senate procedures, Scott said in a statement. Any move on this must start with a hearing, Scott said, adding, "this is not a decision to be rushed – it must be carefully considered and openly debated."

The Fed's power to pay banks interest, granted by Congress, took effect in 2008 as the financial crisis dawned. It quickly gained prominence as part of a large-scale overhaul of the monetary policy architecture, as the Fed confronted the greatest economic downturn since the Great Depression.

As it now stands, the Fed pays deposit-taking banks 4.4% for reserves. It uses another tool called the reverse repo facility to take in cash from money market funds and others, paying them 4.25%. Together, the two rates are designed to keep the federal funds rate, the central bank’s main tool for influencing the economy, within the desired range.

Paying financial firms for de facto loans of cash is essential for interest rate control due to the very large amount of liquidity created by bond buying stimulus efforts. During the COVID-19 pandemic, the Fed more than doubled the size of its balance sheet to a peak of $9 trillion, with asset purchases providing support to the economy beyond what the then near-zero short-term rates could deliver.

Source: Reuters

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Manuel

Economic

Forex

The dollar fell to the weakest level in three years amid worries over US tariffs and the outlook for the US economy.

The Bloomberg Dollar Spot Index slid as much as 0.8% on Thursday to touch the lowest level since April 2022. The euro jumped to the strongest since 2021, while the British pound tapped a new three-year high. All currencies in the Group of 10 gained against the greenback.

The latest declines come on the heels of Thursday data that showed US producer price inflation remained muted in May, held down by tame goods and services costs, which together with other data pushed traders to bet on more interest-rate cuts by the Federal Reserve. The Fed is set to hold its next policy meeting on June 18. Earlier in the Thursday session, the dollar came under pressure as President Donald Trump said he would notify trading partners soon of unilateral levies.

“Trump renewed tariff threats are sparking concerns over US economy, which trickles down to increased bets of Fed easing,” said Helen Given, a foreign-exchange trader at Monex Inc., adding that the dollar index could fall 5% to 6% further this year.

Paul Tudor Jones, the founder of macro hedge fund Tudor Investment Corp., said the dollar may be 10% lower a year from now as he expects to see short-term rates to be cut “dramatically” in the next year.

So far in 2025, the dollar is down more than 8% as investors build up bets that Trump’s trade and tax policies will weigh on the economy. Wall Street strategists have been warning that the dollar has more room to fall, aligning themselves with speculative traders tracked by the Commodity Futures Trading Commission who hold some $12.2 billion of wagers tied to the dollar weakening further.

The concern remains that the US could experience a spike in inflation and start sliding toward a recession amid Trump’s sweeping tariffs on imports. This has investors poring over incoming economic data, especially on the labor market, to determine the path of interest rates in the US.

Recurring applications for US unemployment benefits rose to the highest since the end of 2021 in the week ended May 31, suggesting that out-of-work people are struggling to find employment. Activity at US service providers slipped into contraction territory last month for the first time in nearly a year on an abrupt pullback in demand, the Institute for Supply Management’s index of services showed.

Ahead of possible tariff impact, underlying US inflation accelerated in May by less than forecast for the fourth month in a row.

On Thursday, an auction of 30-year Treasuries drew solid demand, indicating that buyers of long-dated US government bonds see value in them despite concern that’s been mounting about spending and rising debt levels.

The dollar gauge was trading 0.6% weaker at about 4:00 p.m. in New York, curbing its earlier drop. The euro was trading at 1.1579 per US dollar at the time, after it traded as strong as 1.1631 earlier. The pound rose 0.4%, curtailing an advance of as much as 0.6%.

Strategists at a Pictet unit said they expect more weakness in the dollar over Trump’s “flip-flops” on tariffs as well as policies that could lead to a wider deficit. They forecast gains in currencies from developed economies in the coming months.

— Simon White, Markets Live Macro Strategist, London

Meanwhile, a gauge of emerging-market currencies advanced more than 6% this year as the US dollar declines.

“As we move into the second half of the year we see renewed trade policy turmoil, a clearer weakening of the labor market and a shift from the Fed to more dovish communications,” analysts at MUFG, including Derek Halpenny, Lee Hardman and Lin Li, wrote in June FX Outlook. “That will be the catalyst for further dollar depreciation in the second half of 2025 and into 2026.”

Source: Bloomberg

To stay updated on all economic events of today, please check out our Economic calendar

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Manuel

Bond

Economic

A closely watched auction of 30-year Treasuries saw stronger-than-expected demand on Thursday, easing for now worries that investors would shun the US government’s longest maturity.

The $22 billion sale followed weeks of fretting over whether spiraling budget deficits and President Donald Trump’s trade war would deter buyers from lending to the US for such a lengthy period. But it drew a yield of 4.844%, below the yield around the auction deadline. That was a sign of solid appetite, and 30-year bonds proceeded to extend their gains.

The results pushed the benchmark rate on the long bond below where it was trading when Moody’s Ratings stripped the US of its last top credit rating in May, blaming successive administrations and Congress for swelling budget shortfalls that it said showed little sign of abating.

Investors were wary coming into the event after a surprisingly poor reception for a 20-year auction in May contributed to a selloff that pushed 30-year rates as high as 5.15%, leaving them just below an almost two-decade high and sparking losses in stocks and the dollar. The last 30-year sale also saw somewhat weak demand.

The initial reaction is “a sigh of relief that it was a solid auction,” said Jack McIntyre, a portfolio manager at Brandywine Global Investment Management. “Ultimately, it will be the economic data that confirms a top is in at 5%.”

The robust result for the auction was even more notable as it came after the maturity had already rallied in the past two trading sessions on the back of softer inflation and jobless claims data. Looking ahead, there’s still plenty of concern around the maturity given longer-term worries about government spending and rising debt levels, and the potential for tariffs to reignite inflation.

“The positive inflation data should continue to be a small source of support over the near-term,” said John Canavan, analyst at Oxford Economics. “But we still expect upward pressure on inflation will develop due to tariffs in the months ahead, so that support may be temporary.”

Canavan said he’s “not convinced 5% will hold for the 30-year.”

What Bloomberg strategists say:

“A solid result for Thursday’s $22 billion 30-year reopened auction paves the way for a continued rally into the weekend. Metrics were strong with end users taking 88.6%, the most since November, suggesting no buyers strike among end users despite concerns of ballooning debt and budget deficits.”

— Alyce Andres, Markets Live Macro strategist

The outcome came despite recent angst around the president’s tax bill, which is forecast by some to add trillions to US budget deficits in the years ahead — though at least partially mitigated by income from tariffs the administration has instituted.

Against that backdrop of expanding government shortfalls, investors have demanded higher yields on longer maturities, increasing a cushion known as the term premium and causing the yield curve to steepen.

“I still worry about the impact on the long-end from fiscal and trade policy, with term premium likely to remain elevated and the curve set to remain steeper,” said Gennadiy Goldberg, head of US rates strategy at TD Securities. “The market is quite focused on deficits and if economic data starts to show signs of softening, investor attention could rapidly shift away from deficits, pushing yields lower amid flight to safety flows.”

Source: Bloomberg

To stay updated on all economic events of today, please check out our Economic calendar

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Manuel

Cryptocurrency

Ethereum builders outlined a “Lean Ethereum” roadmap that aims to trim layer-1 complexity while hardening security, according to researcher Thomas Coratger on June 12 via X.

Co-founder Vitalik Buterin and researcher Justin Drake discussed the concept in a breakout session at the Forschungsingenieurtagung conference in Berlin. It proposes three guiding targets: security, simplicity, and optimality.

‘Lean Ethereum’

Coratger wrote that the roadmap calls for post-quantum-ready signatures and reworked data availability to guard the ledger against future cryptographic threats.

He added that simplicity would come from slimming consensus, execution, and data layers so new contributors can audit code without steep learning curves. Optimality aims to achieve lower latency and overhead, keeping Ethereum competitive while maintaining its decentralization.

Buterin illustrated the effort with four research tracks already under review. The first is a three-step-finality (3SF) protocol that delivers rapid block finality in a compact codebase, while the second is aggregated post-quantum signatures.

A third research track focuses on zero-knowledge virtual machines that enable verifiable execution, with a data-layer refactor that merges blobs through erasure coding, rounding up the tracks.

Drake connected those tracks to existing strategy items, including user-experience upgrades, scalability work, and full-chain sampling.

The ‘Lean’ banner

Furthermore, Drake laid out several near-term proposals under the “lean” banner, including lean staking, which would strip validator duties to the essentials.

Lean verifiability would let low-power devices confirm blocks with modest bandwidth. A lean crypto approach would reduce the protocol’s reliance on multiple primitives, favoring a single hash function and post-quantum schemes wherever possible.

He also promoted “lean specs,” breaking logic into small modules, and “lean formal verification,” starting with zk-VMs and signature aggregation.

Coratger noted the alignment between these ideas and active engineering work, such as Fork-Choice enforced Inclusion Lists (FOCIL), zkEVM pilots, and beam roadmap prototypes.

He reported that session participants acknowledged the difficulty of achieving optimality but viewed the payoff as worthwhile, especially as rollups and centralized sequencers reshape Layer 2 processing.

Foundation response

Ethereum Foundation co-executive director Tomasz Stańczak described Drake’s presentation as a forward-looking synthesis of current projects and longer-range research.

Stanczak wrote that many ideas will proceed to testing while others will evolve, calling the roadmap an “unifying theory” rather than an immediate directive. He added that the talk motivated contributors by tying today’s milestones to a broader technical horizon.

Yet, Lean Ethereum remains a research framework without a scheduled hard fork proposal. Core teams plan to refine design documents, prototype features such as mini-3SF, and evaluate trade-offs in working group calls.

Source: Cryptoslate

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Adam

Forex

The dollar fell on Thursday after Donald Trump announced his intention to send letters to certain US trading partners within two weeks informing them of the tariffs that will be imposed on them.

As a result, the euro gained ground against the dollar, returning to its highest level since the end of 2021.

While in the wake of Donald Trump's election last November, everyone expected the euro to return to parity, the opposite has happened. Since the beginning of the year, the euro has risen by 12%.

This movement is mainly due to the decline of the dollar, in a context of uncertainty linked to the trade war, which is prompting investors to reduce their exposure to US assets. The dollar index has thus fallen 10% over the year.

Gold rather than the euro

The rise in parity is generally good news for Europe, particularly because it helps to control inflation (lower import costs).

Some even see the decline in appetite for US assets as an opportunity for the single currency. This is particularly the case for Christine Lagarde. Last month, the ECB president said that "the changes underway are paving the way for a global euro moment."

For now, the dollar remains dominant. The greenback accounts for 58% of international reserves. While this is a historically low level, it is still well above the euro's 20%.

The euro therefore still has some way to go before it can establish itself as a global reserve asset. Especially since it is not only competing with the dollar: gold is also emerging as a serious contender. In three years, its price has jumped by 80%, driven by massive purchases by central banks. According to the ECB, the weight of gold in central bank reserves exceeded that of the euro in 2024.

The euro at its highest since 2021… but facing competition from gold_1

Source: marketscreener

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Adam

Economic

U.S. President Donald Trump on Thursday warned he may soon hike auto tariffs, arguing that could prod automakers to speed U.S. investments.

"I might go up with that tariff in the not too distant future," Trump said at a White House event. "The higher you go, the more likely it is they build a plant here."

Automakers have been pressing the White House to reduce the 25% tariffs Trump imposed on autos. The Detroit Three automakers have criticized a deal that would cut tariffs on British car imports but not on Canada or Mexico production.

Trump cited a series of recent investment announcements including GM saying this week that it plans to invest $4 billion in three U.S. plants and move some SUV production from Mexico. He also noted a $21 billion Hyundai investment announced in March including a new U.S. steel plant.

"They wouldn't have invested 10 cents if we didn't have tariffs, including for manufacturing American steel, which is doing great," Trump said.

Mexico said last month that cars assembled in Mexico and exported to the U.S. will face an average tariff of 15%, not 25% because Washington is giving automakers reductions for the value of U.S. content.

Automakers are facing increasing cost pressures stemming from tariffs. In recent weeks, Ford Motor and Subaru of America have hiked prices on some models due to higher costs from Trump's tariffs. In May, Ford estimated tariffs would cost it about $1.5 billion in adjusted earnings.

GM said last month it had a current tariff exposure of between $4 billion and $5 billion, including about $2 billion on the more affordable vehicles GM imports from South Korea, where it makes entry-level Chevrolet and Buick models.