Tokenized Treasury Market Is Worth Over $600 Million: Binance Research
The tokenization of real-world assets (RWA) has experienced significant growth in recent years, attracting both individual users and institutional players. According to a recent study by Binance Research, RWAs have emerged as the 10th largest sector in decentralized finance (DeFi), climbing from the 13th spot just a month ago.
This rise in the ranks of RWAs is a clear indication of the increasing adoption of RWA protocols. The introduction of stUSDT, a new token, has played a major role in catalyzing this trend. Currently, there are more than 41.3K RWA token holders on the Ethereum blockchain, representing a 130% increase from the beginning of the year.
One aspect of the RWA sector that has gained prominence is tokenized US Treasuries. US Treasuries are debt issued by the US government and are considered a benchmark for risk-free assets in traditional financial markets. As interest rates have been on the rise, the yields on these treasuries have also increased, surpassing DeFi yields significantly.
Investors can now take advantage of real-world yields by investing in tokenized treasuries without leaving the blockchain. According to the report, the tokenized treasury market is currently valued at approximately $603 million, with investors lending this amount to the US government at an APY of nearly 4.2%.
Looking ahead, tokenized assets are projected to be a $16 trillion market by 2030, according to a study by the Boston Consulting Group. This growth would result in the tokenization of assets equivalent to 10% of the global GDP. The estimation takes into account both on-chain asset tokenization, relevant to the blockchain industry, and traditional asset fractionalization, such as exchange-traded funds (ETFs) and real estate investment trusts.
Experts believe that the adoption of RWAs will be driven by the emergence of Central Bank Digital Currencies (CBDCs), tokenized assets in gaming, and blockchain-based payments on social media. Fractional ownership is also seen as a key proposition for the adoption of RWAs.
The tokenized treasury market’s worth of over $600 million demonstrates the increasing interest and potential of tokenized assets. As the market continues to grow, it will likely attract more investors and contribute to the overall development of the decentralized finance ecosystem.