Avalanche’s tokenization market surged in Q4 2025 after BlackRock deployed $500 million of its BUIDL tokenized fund. The total value locked in Avalanche real-world asset tokenization increased dramatically, surpassing $1.3 billion during the quarter.
Avalanche released its Q4 results, indicating that the RWA segment experienced incredible expansion following the BUILD placement. This placement helped drive a 68.6% increase over the previous quarter, while its year-over-year gain was 949.3%.
BlackRock’s tokenized fund offers exposure to US Treasury notes, as well as providing the ability to raise short-term debt. This is why the $500 million tokenization in October 2025 acted as a concentrated source of on-chain capital for the network.
Avalanche quarterly performance combined rapid issuance with concentrated institutional demand, resulting in the 68.6% quarterly increase and the nearly tenfold year-over-year growth that propelled TVL above $1.3 billion.
Q4 surge and BlackRock’s role
BlackRock’s BUIDL strategy is multi-chain, with the majority of its assets hosted on Ethereum, while additional deployments extended to various Layer 1 and Layer 2 networks. Industry reports listed the fund’s presence on multiple platforms, including Ethereum (where it holds the majority of its assets), Solana, Polygon, and BNB Chain.
This multi-chain profile increased on-chain options for custodians and trading venues, but also intensified competition among tokenized treasury products. In late January, Circle’s USYC briefly surpassed BUIDL in assets under management, with USYC at approximately $1.69 billion compared to BUIDL’s $1.68 billion.
The Q4 2025 spike underscores a maturing segment where traditional finance issuers and tokenization platforms are materially impacting on-chain liquidity.
Competition among tokenized treasury products will likely keep fee dynamics and liquidity flowing smoothly, with participants monitoring AUM movements and cross-chain liquidity as indicators of where institutional flows are concentrating and how that alters on-chain trading and collateral conventions.
