TL;DR
- Total value of tokenized treasures exceeds $2 billion.
- Growth driven by private credit and US Treasuries is trending upward rapidly.
- The average yield to maturity is 4.94%, with a very short weighted maturity of 0.11 years.
The tokenization of US Treasuries has reached a new milestone by surpassing $2 billion, consolidating itself as one of the most prominent assets in the backing of stablecoins and ERC-20 tokens.
This phenomenon reflects a significant shift in the cryptocurrency financial landscape, where tokenization of real-world assets (RWA) is establishing itself as a key tool to attract capital inflows and provide new forms of collateral for DeFi projects.
The recent growth in treasure tokenization has been impressive.
From the first trillion in tokenized assets, which took over 400 days to accumulate, the next trillion was added in just around 150 days.
This accelerated rise suggests that the RWA field may be entering a stage of exponential growth, known as the “hockey stick” phase, in which values and interest skyrocket rapidly.
The impetus behind this expansion is largely due to private credit, in addition to US Treasuries.
These assets offer an average yield to maturity of 4.94%, with a surprisingly short weighted maturity of 0.11 years, reflecting a relatively low risk profile and high liquidity.
The trend has been supported by a growth in the number of issuers and holders, despite a slight decrease in holders over the past seven days.
RWA tokenization remains focused on purely specialized financial projects
Among these, BlackRock‘s pioneering projects, such as the BUIDL token on Ethereum, have set the standard for tokenization of financial products.
However, competition is growing, with platforms like Ondo Finance and Securitize leading the space, while smaller projects like Hashnote, Open Eden and Superstate also show notable growth.
The tokenization market is being driven not only by stablecoins, but also by new forms of collateral for DeFi and onboarding tools for traditional investors.
The Ethereum blockchain remains the primary platform for these assets, although Mantle, by specializing in RWAs and using treasuries to back its USDY token, is quickly gaining ground.
The RWA narrative is also gaining interest in 2024, with an increase in active addresses and holders interacting with tokenized traditional assets.
Trading volume for these assets has surpassed $4 billion in recent weeks, and the sector as a whole has shown a 30% recovery in the past two weeks, standing above $30 billion in total value.
This resurgence could spark a new rally for older, less liquid tokens, reviving interest in projects like Ravencoin.
However, it is important to note that not all RWA-labeled tokens will perform similarly, as some might be influenced more by hype and speculation than by solid fundamentals.
