Tokenized US treasuries may hit $3 billion by the end of 2024, analyst says
The post Tokenized US treasuries may hit $3 billion by the end of 2024, analyst says appeared on BitcoinEthereumNews.com.
Tom Wan, a research analyst at 21co, predicted that tokenized US treasuries could reach $3 billion by the end of 2024. He noted that the growing interest in this asset class from crypto projects looking to diversify their treasury could push it to hit this milestone. Also Read: Goldman Sachs plans to launch tokenization products by the end of the year Wan’s predictions highlight the growth of real-world asset (RWA) tokenization as a major use case for blockchain technology. Interest in this category is increasing from traditional financial institutions, with Goldman Sachs now planning to launch its own tokenized funds. Crypto projects DAOs tap tokenized US treasuries to diversify treasuries According to data from Dune Analytics, the total asset under management for tokenized US treasuries is $1.78 billion. This means the asset class must record almost 100% growth over the next 6 months to reach $3 billion. However, Wan believes that more Decentralized Autonomous Organizations (DAOs) will invest in tokenized assets in the coming months. Top 5 US Asset Tokenization Platforms (Source: Dune Analaytics) DAOs for several crypto projects now consider on-chain RWA an ideal asset class when diversifying their treasuries. Wan noted that stablecoins and tokenized US treasuries are their top two options. These products offer a risk-free opportunity to yield-bearing assets directly within the crypto ecosystem. He said: “With the maturity of tokenized US treasuries, over 15+ products on EVM Chains, and close to $2B AUM, DAO is starting to include yield-bearing products like BUIDL, USTB, USDY, and USDM in its treasury. We would definitely see this trend continue in the long run.” DeFi platform and stablecoin issuer, MakerDAO, recently announced plans to invest $1 billion of its reserves into tokenized US treasuries and has called on protocols to apply. At least three major platforms for US treasuries…
Filed under: News - @ July 16, 2024 7:20 pm