This surge comes as competition in the real-world asset race within the crypto industry continues to escalate.
The US Treasury market has seen a significant surge in tokenization, growing almost sevenfold in 2023 to reach $698 million.
This growth is driven by increased competition among investment options and blockchain platforms.
Both new entrants and existing platforms have contributed to this expansion. Established protocols like Ondo Finance, Maple, and Backed have experienced substantial growth, while new protocols like Tradeteq and TrueFi’s Adatp3r have attracted significant deposits.
Ethereum has surpassed Stellar in the on-chain value of Treasury tokens, indicating its dominance in this space.
Polygon and Solana have also attracted a combined $40 million in assets, showcasing a diverse blockchain landscape for tokenized assets.
Permissionless yield-bearing stablecoin alternatives, such as Ondo Finance’s USDY and Mountain Protocol’s USDM, offer a fresh avenue for tokenization by directly passing on the yield earned from the backing assets.
Tokenization of Treasuries has paved the way for bringing real-world assets onto blockchain platforms, with investors increasingly drawn to these offerings for higher returns. It is predicted that the market for tokenized assets could reach $10 trillion by the end of the decade.