Tokenized US Treasurys to Grow to $845M by 2023 – CoinGecko
Shipped with traditional financial companies, tokenized Treasuries in the United States. 641% growth by 2023, according to digital asset data tracker CoinGecko.
On March 21, CoinGecko published its 2024 report titled “The Rise of Real-World Assets in Crypto,” showing the growth in real-world assets (RWA) tokens.
CoinGecko in 2011 By 2023, tokenized Treasurys went from $114 million in January to $845 million by the end of the year. This shows that blockchain-based digital tokens representing US Treasury securities have experienced a 641% growth in one year.
Tokenized Securities are digital tokens backed by RWAs like stocks and bonds. For example, Ondo's short-term US government bond fund uses the OUSG token to represent the fund's share ownership and yield.
CoinGecko highlighted that asset management firm Franklin Templeton is currently the largest issuer of tokenized treasuries. The company issued $332 million worth of tokens in an on-chain US government fund, accounting for 38.6% of the market.
Franklin Templeton is one of 10 exchange-traded fund (ETF) issuers that opened a Bitcoin ETF position in the US in January. Ethereum is also in the running to launch an ETF and filed an application with the US Securities and Exchange Commission on February 12.
In addition to Franklin Templeton, other protocols that feature stablecoins backed by US Treasury bills are also gaining popularity. CoinGecko highlighted in its report that since its launch in September 2023, Mountain Protocol's USDM tokens have risen from $26,000 to $154 million.
Tokenized US Treasurys are primarily based on the Ethereum network. In the report, CoinGecko said that 57.5% of tokens are on Ethereum. Meanwhile, companies like Franklin Templeton and WisdomPrime have issued tokenized securities on Stellar, giving the network a 39% market share.
Related: Tokenized government bonds free up liquidity in traditional financial systems
While tokenized treasuries exploded in 2023, growth slowed in 2024. As of February 1, they have a capitalization of 861 million dollars.
In addition to tokenized treasures, CoinGecko also highlighted that product-backed tokens have already reached a market capitalization of $1.1 billion in February, Tether Gold (XAUT) and PAX Gold (PAXG) tokenized precious metals account for 83% of the market capitalization.
A new project has also launched a Uranium token, which will allow the precious metal to be redeemed with a digital token.
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