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RWAs propel Treasuries above $1.5 billion
4h00 ▪ 3 min reading ▪ by Fénelon L.
The tokenized real-world asset-backed (RWA) sector is seeing rapid growth in 2024, driven by increasing demand for tokenized U.S. Treasury bonds with capitalizations above $1.5 billion, attracting investors looking for innovative crypto opportunities.
A new growth lever for RWAs
The year 2024 marks a major turning point for emerging countries RWA sector. Since the start of the second quarter, this niche has seen rapid growth of over 30%, largely fueled by investors’ voracious appetite for tokenized Treasuries.
The flagship of this new generation of assets, the black rock The USD Institutional Digital Liquidity Fund ($BUIDL), saw its capitalization increase by 65% over the last three months. This momentum propelled the total value of tokenized Treasuries past the psychological ceiling of $1.5 billion.
Its main competitor, the Franklin Templeton Onchain US Government Money Fund ($FOBXX), is not to be outdone with an impressive increase of 27% over the same period.
The DeFi protocol Ondo Finance, a key player in RWA, also illustrates this upward trend. Its total value locked increased from $221 million in April to $507 million at the end of June, a jump of almost 130%.
A strong investor signal enthusiasm for this new class of crypto assets backed by tangible assets. The native token ONDO has also climbed 68% since the end of March 2024.
A New Frontier for Crypto Investing
While tokenized products and stable coins The sectors remained relatively stable, symbolized Treasury bonds have concentrated the majority of investment flows in recent months. This appetite highlights the attraction of investors for these hybrid digital assets combining tradition and innovation.
With this record capitalization, the segment of tokenized Treasury bonds reaches a major milestone, establishing itself as the spearhead of the emerging RWA universe.
A movement which could well continue, with institutional and individual investors gradually adopting these hybrid financial instruments combining traditional finance and crypto world.
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Fenelon L.
Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share 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 belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.