As of Monday, the market for tokenized U.S. Treasuries rocketed to an impressive $698 million, a staggering leap from roughly $100 million at the dawn of the year, per insights from RWA.xyz, a platform tracking real-world assets (RWA). Charlie You, co-founder of RWA.xyz, highlighted in the Our Network newsletter that this surge is fueled not only by fresh faces entering the scene but also by the expansion of veteran platforms.
Momentum Behind Established and New Protocols
Data reveals that stalwarts such as Ondo Finance, Maple, and Backed witnessed considerable growth in recent months. On the other hand, newcomers like Tradeteq and TrueFi’s Adatp3r, both of which launched just this past September, drew deposits totaling $4.5 million and $8.5 million respectively, signaling robust newcomer appetite.
Blockchain Networks Evolving as Tokenized Treasuries Shift
Recent blockchain information shows Ethereum [ETH] has overtaken Stellar [XLM] in the aggregate value of Treasury tokens locked on-chain. Additionally, later entrants Polygon [MATIC] and Solana [SOL] together amassed more than $40 million worth of assets. According to You from RWA.xyz, this pattern points toward “an increasingly diversified blockchain environment for tokenized assets.”
By mid-2024, Ethereum secured approximately 45% of the total tokenized Treasury market share, with Stellar, Polygon, and Solana collectively accounting for around 35%. This diversification marks a significant shift from early dominance by single-chain ecosystems.
New Stablecoin Models Drive Tokenization Forward
The advent of permissionless, yield-bearing stablecoin alternatives has carved out fresh pathways within tokenization. Ondo Finance rolled out its USDY token, while Mountain Protocol followed with USDM. Unlike the industry’s front-runners — Tether’s USDT and Circle’s USDC — these tokens channel the actual yield generated from their underlying assets directly to holders, a game-changer according to You.
Real-World Asset Tokenization: A Strategic Move Amid Market Shifts
The drive to tether tangible assets like Treasuries onto blockchain networks has been central to advancing RWA adoption. Amid surging global interest rates coupled with dwindling yields in decentralized finance avenues, crypto investors eye these tokenized offerings as a way to secure enhanced returns. In fact, the investment firm 21.co projects the tokenized asset market could balloon to an eye-watering $10 trillion by 2030.
