tl;dr
The market for tokenized U.S. Treasury debt is rapidly expanding, with a market value of over $1 billion for the first time. This includes Treasury notes tokenized through public blockchains like Ethereum, Polygon, Avalanche, and Stellar. The rapid increase in market value has been attributed to the...
The market for tokenized U.S. Treasury debt is rapidly expanding, with a market value of over $1 billion for the first time. This includes Treasury notes tokenized through public blockchains like Ethereum, Polygon, Avalanche, and Stellar. The rapid increase in market value has been attributed to the rise in Treasury yields and the appeal of diversifying investment portfolios for crypto investors.
Data tracked by 21.co shows $1.08 billion in Treasury notes has been tokenized through public blockchains. The tally has risen nearly 10-fold since January 2023 amid elevated interest rates worldwide.
The market value of Treasury notes tokenized through public blockchains like Ethereum, Polygon, Avalanche, Stellar and others has crossed above $1 billion for the first time, data tracked by Tom Wan, an analyst at crypto firm 21.co, show. Tokenized Treasuries are digital representations of U.S. government bonds that can be traded as tokens on the blockchain. The market value has risen nearly 10-fold since January last year and 18% since traditional finance giant BlackRock announced Etheruem-based tokenized fund BUIDL on March 20. As of writing, BUILD is the second-largest such fund, with a tokenized value of $245 million, trailing only Franklin Templeton's Franklin OnChain U.S. Government Money Fund (FOBXX) – one share of which is represented by the BENJI token – which led the pack with $360.2 million in deposits.
Investing in tokenized Treasuries can help crypto investors diversify their portfolio, allowing them to settle transactions on any given day. "The beauty of tokenization, you can settle the transaction 24/7," Wan said.
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