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Tokenized US Treasury Market Skyrockets By Nearly 600% Amid Global Spike In Interest Rates

Published 31/10/2023, 06:56
© Reuters.  Tokenized US Treasury Market Skyrockets By Nearly 600% Amid Global Spike In Interest Rates
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Benzinga - The market for tokenized versions of U.S. Treasuries has seen almost a seven-fold increase this year as competition escalates among investment offerings and blockchain platforms.

According to a CoinDesk report, data from real-world asset (RWA) monitoring platform, RWA.xyz, reveals that the tokenized Treasury market jumped to $698 million from about $100 million at the beginning of the year. Charlie You, co-founder of RWA.xyz, attributes this exponential growth to both new entrants in the space and expansion of existing platforms.

See Also: Crypto Analyst Says Dogecoin Is Eyeing Bullish Breakout After Years In The Shadows

Existing platforms like Ondo Finance, Maple, and Backed have experienced significant growth over the recent months. Meanwhile, newer protocols such as Tradeteq and TrueFi’s Adatp3r offering, launched in September, have attracted deposits of $4.5 million and $8.5 million respectively.

The Ethereum (CRYPTO: ETH) network has recently outpaced the Stellar (CRYPTO: XLM) network in terms of the value of Treasury tokens on-chain. Newer entrants like Polygon (CRYPTO: MATIC) and Solana (CRYPTO: SOL) have also garnered over $40 million of assets combined, indicating a diversifying blockchain landscape for tokenized assets, according to You.

Investment firm 21.co anticipates the market for tokenized assets could reach $10 trillion by the end of the decade. Crypto investors are increasingly drawn to these offerings as global interest rates rise in conjunction with declining decentralized finance yields.

Read Next: Bitcoin Just Hit $31,000: What’s Going On?

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