RWA race intensifies: The tokenized U.S. Treasury market grows nearly 600% to $698 million

By Krisztian Sandor, CoinDesk; Compiler: Song Xue, Golden Finance

As competition between investment products and blockchain investment products intensifies, the tokenized version of U.S. Treasuries has grown nearly seven-fold so far in 2023. **

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Tokenized Treasury Market (RWA.xyz)

As of Monday, the tokenized Treasury market surged to $698 million from about $100 million at the start of the year, according to RWA monitoring platform RWA.xyz. Charlie You, co-founder of RWA.xyz, noted in the Our Network newsletter that this growth is driven by new entrants in the space, as well as growth from existing platforms. **

RWA data shows that existing protocols, including Ondo Finance, Maple, and Backed have seen significant growth over the past few months. Meanwhile, new protocols that just launched in September, such as Tradeteq and TrueFi's Adatp3r products, attracted $4.5 million and $8.5 million in deposits, respectively.

According to blockchain data, Ethereum (ETH) recently beat the Stellar (XLM) network on on-chain vault token value, while later entering Polygon (MATIC) and Solana (SOL) also attracted assets totaling more than $40 million. RWA.xyz's You said this shows that "the blockchain landscape for tokenized assets is diversifying." **

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Market Value of Tokenized Treasury Bonds by Blockchain (RWA.xyz)

You added that with the launch of the USDY token by Ondo Finance and the launch of USDM by Mountain Protocol, permissionless yield stablecoin alternatives have become a new avenue for tokenization. These products differ from the leading stablecoins (Tether's USDT and Circle's USDC) in that they earn yield directly from the backed assets.

Treasury tokenization has taken the lead in incorporating real-world assets into the blockchain system. With global interest rates soaring and decentralized finance yields falling, crypto investors seek these products for higher returns. **Investment firm 21.co predicts that the market for tokenized assets could grow to $10 trillion by the end of the decade. **

Source: Golden Finance