EddieJayonCrypto
24 Jun 24
The tokenized US treasuries market is experiencing significant growth due to high interest rates and increased demand for safe, high-yielding on-chain assets. The value of tokenized US Treasury products has surged by over 1,000% since early 2023, reaching $1.64 billion by June 22. Major players like...
Unprecedented growth in the tokenized US treasuries market is being driven by high-interest rates and the demand for safe, high-yielding assets. The value of tokenized US Treasury products has surged by over 1,000% since early 2023, reaching $1.64 billion by June 22. BlackRock's BUIDL fund has taken the lead, signaling a significant shift in the financial industry. Major institutions like BlackRock and Franklin Templeton are pioneering this expansion, with BlackRock's BUIDL fund overtaking Franklin Templeton's BENJI fund to become the largest. The financial industry is witnessing a move towards real-world asset tokenization, with major institutions actively investing in tokenization technologies. Tokenization offers benefits such as increased liquidity, faster transaction times, and lower fees, leading to expanding use cases for tokenized treasuries, including as collateral. Stablecoins have been driving growth in the tokenization sector, with the total value of tokenized non-stablecoin assets exceeding $3 billion and major financial institutions recognizing the advantages of asset tokenization. The emergence of stablecoins and digital tokens is revolutionizing payment systems, attracting major institutions and enhancing market appeal. Additionally, tokenization promises to provide faster, more efficient, and secure services, with traditional financial giants exploring blockchain technology to drive growth and innovation.