Mike Novogratz Issues RWA Prediction As BlackRock’s BUIDL Hits $1 Billion Milestone

Godfrey Benjamin
March 15, 2025
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Mike Novogratz Talks on RWA Amid BlackRock BUIDL Record

Highlights

  • BlackRock's BUIDL tokenized fund just surpassed $1 billion in AUM
  • Mike Novogratz believes the future of RWA adoption is bright
  • More corporate firms including Ripple Labs are pushing new frontiers in RWA

Mike Novogratz, the founder and CEO of Galaxy Digital, reiterated his belief in the rapid expansion of real-world asset (RWA) tokenization. His statement came after BlackRock’s tokenized fund, BUIDL, surpassed $1 billion in Assets Under Management (AUM). Novogratz, a long-time advocate for blockchain technology in traditional finance, believes tokenization will reshape the financial industry.

Advertisement
Advertisement

Mike Novogratz Predicts The Future of RWA

Mike Novogratz has been vocal about blockchain’s potential to transform traditional financial markets. He maintains that anything capable of being tokenized will eventually be moved on-chain. His recent comment on X emphasizes the growing role of blockchain in financial infrastructure, particularly in tokenization moves.

The billionaire investor argues that blockchain ensures transparency, efficiency, and security, making it an attractive solution for institutions. Mike Novogratz believes the push toward tokenization is no longer a theoretical concept but an active movement gaining traction across financial sectors. 

According to Novogratz, blockchain-based financial products will become essential tools for institutional investors soon. He predicts this as companies search for novel ways to improve liquidity and settlement processes.

His prediction also agrees with a larger trend of financial institutions turning to tokenized assets. Major firms have already begun integrating blockchain into their asset management strategies, and Novogratz expects this shift to accelerate in the coming years. He points to the rapid development of blockchain infrastructure as a key factor in the mainstream adoption of RWAs.

Advertisement
Advertisement

The BlackRock BUIDL Milestone

Meanwhile, BlackRock’s BUIDL fund has reached a major milestone, crossing the $1 billion mark in assets under management. The investment giant launched the product in March 2024 in partnership with Securitize. BUIDL is an ERC-20 token on the Ethereum blockchain. The fund exposes institutional investors to U.S. Treasury bills and repurchase agreements while leveraging blockchain for enhanced security and liquidity.

A significant factor in BUIDL’s growth was the launch of Frax Finance stablecoin with BUIDL as its backing reserve. This move reinforced the increasing demand for tokenized financial products and demonstrated how blockchain technology is being integrated into traditional asset management.

By tokenizing U.S. Treasury assets, BlackRock aims to improve liquidity, streamline transactions, and reduce counterparty risks. The success of BUIDL signals a broader industry movement toward blockchain-based investment vehicles.

Meanwhile, In January, BlackRock’s CEO Larry Fink urged the US Securities and Exchange Commission (SEC) to approve the tokenization of bonds and stocks. This, he believes can fuel the push for RWA.

Advertisement
Advertisement

Firms Embracing Tokenization

Other major financial firms follow a similar path to complement the Mike Novogratz spotlight. For example, Ripple Labs, known for its work in blockchain payments, has been expanding its focus on tokenization. 

In November 2024, Ripple announced their first tokenized money market fund on XRP Ledger. The firm floated this product in partnership with crypto exchange Archax and UK asset manager abrdn. Since then, the company has expressed confidence in RWAs as a key driver for the future of finance. 

To advance its tokenization push, it also launched RLUSD stablecoin in December 2024. Earlier, CoinGape reported Ripple minted 6.5 million RLUSD on Ethereum, proof of the product’s expansion 

As Novogratz predicted, the adoption of tokenized assets is gaining momentum, with BlackRock and Ripple at the forefront.

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.