- The rise in Treasury yields has led to an increase in the tokenization of real-world assets. Investment firms like Franklin Templeton have started issuing government securities on the blockchain due to the high interest rates offered by US bonds.
- This trend is not limited to Treasurys, as there is also a growing momentum in tokenizing commodities, currencies, and investment funds.
- Currently, the total value of on-chain assets is $118.6 billion, but experts predict that this number will significantly increase.
- Big banks like JPMorgan are also getting involved in tokenization, with the launch of their Tokenized Collateral Network. Tokenization offers several benefits, such as increased liquidity and 24/7 trading availability.
- However, one obstacle to further adoption is the fragmented market, which would require a centralized exchange for tokenized assets.
- Despite this, the tokenization of real-world assets is seen as the next step in the evolution of finance.
The rise in Treasury yields is driving the tokenization of real-world assets on blockchains
