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RWAs push Treasury bonds above $1.5 trillion
4h00 ▪ 3 minute read ▪ by Fenelon L.
The tokenized asset sector, backed by real-world assets (RWA), is experiencing rapid growth in 2024, driven by growing demand for tokenized U.S. Treasury securities with a capitalization greater than $1.5 billion, attracting investors seeking of innovative cryptographic opportunities.
A new growth lever for RWAs
The year 2024 marks a major turning point for emerging countries RWA sector. Since the start of the second quarter, this niche has shown rapid growth of more than 30%, largely fueled by investors’ voracious appetite for tokenized Treasury securities.
The flagship of this new generation of assets, the Black rock The USD Institutional Digital Liquidity Fund ($BUIDL) has seen its capitalization increase by 65% in the last three months. This momentum pushed the total value of tokenized Treasuries past the psychological mark of $1.5 billion.
Its main competitor, the Franklin Templeton Onchain US Government Money Fund ($FOBXX), has not lagged behind with an impressive increase of 27% over the same period.
DeFi protocol Ondo Finance, a key player in RWAs, also illustrates this upward trend. Its total value locked increased from $221 million in April to $507 million at the end of June, an increase of nearly 130%.
A strong investor signal enthusiasm for this new class of cryptocurrencies backed by tangible assets. The native token ONDO has also grown by 68% since the end of March 2024.
A new frontier for Crypto investments
While tokenized raw materials and stablecoins Sectors have remained relatively stable, tokenized Treasuries have concentrated the majority of investment flows in recent months. This appetite highlights investors’ attraction to these hybrid digital assets that blend tradition and innovation.
With this record capitalization, the tokenized Treasury securities segment reaches an important milestone, establishing itself as the spearhead of the nascent RWA universe.
A movement that could continue, with institutional and retail investors gradually adopting these hybrid financial instruments that combine traditional and corporate finance cryptographic world.
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Fenelon L.
Passionate about Bitcoin, I want to explore the meanings of blockchain and cryptocurrencies and participate in my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.