2 months ago
21co expert Tom Wan believes tokenized US treasuries volition deed $3 billion by the extremity of 2024 amid rising adoption among DeFi projects and Decentralized Autonomous Organizations (DAOs).
According to Wan, the inclination is driven by a need for diversification and stability, particularly arsenic precocious involvement rates marque these assets attractive.
Currently, determination are implicit 15 tokenized US Treasury products disposable connected Ethereum Virtual Machine (EVM) chains, managing astir $2 cardinal successful assets nether absorption (AUM).
Rising adoption
Wan said DeFi projects are progressively diversifying their treasuries to incorporated tokenized US Treasuries and stablecoins — signaling a major displacement toward real-world assets (RWAs) wrong the crypto ecosystem.
Notable examples see Arbitrum and MakerDAO, which person allocated $27 cardinal and $1 billion, respectively, to these yield-bearing products. These investments are portion of a broader strategy to supply risk-free yields without exiting the blockchain ecosystem, facilitated by fiscal giants similar BlackRock and Securitize.
BlackRock’s USD Institutional Digital Liquidity Fund, known arsenic BUIDL, has precocious go the largest tokenized treasury fund, surpassing Franklin Templeton’s BENJI fund.
BUIDL’s marketplace headdress has soared to astir $500 million since its motorboat earlier successful the twelvemonth — reflecting the increasing request for these assets.
Poised for growth
The tokenized US Treasury marketplace has experienced explosive growth, with implicit $2 cardinal successful assets tokenized connected blockchains specified arsenic Ethereum, Polygon, and Solana.
Wan said this maturation is expected to continue, with projections indicating that the marketplace headdress for tokenized US Treasuries could transcend $3 cardinal by the extremity of 2024.
The integration of tokenized US Treasuries into DeFi treasuries represents a important improvement successful the convergence of accepted concern and blockchain technology. As much DAOs and DeFi projects follow these products, the assemblage is poised for important growth, attracting investors seeking reliable returns successful the volatile crypto market.
The inclination highlights the imaginable for real-world plus tokenization to alteration the fiscal landscape, offering accrued liquidity, faster transactions, and little fees. With large fiscal institutions exploring blockchain technology, the adoption of tokenized assets is acceptable to reshape the aboriginal of finance.
The station 21co expert sees tokenized US treasuries hitting $3 cardinal by year-end appeared archetypal connected CryptoSlate.
English (US) 