Jun 10, 2024 - Economy

Charted: 🪙 Tokenized U.S. treasuries

The line chart shows the significant increase in tokenized U.S. treasuries from January 1, 2023, to June 4, 2024. There are $1.5 billion worth of U.S. treasuries on the blockchain as of June 4.
Data: rwa.xyz; Chart: Axios Visuals

There's a growing set of issuers putting U.S. treasuries on the blockchain, including asset managers like BlackRock and WisdomTree.

  • Fidelity International, meanwhile, reportedly used JPMorgan's private blockchain to tokenize money-market funds.
  • Plus, there's Robert Leshner's Superstate and Lucas Vogelsang's Centrifuge on the crypto-native side.

Zoom in: BlackRock and Securitize's tokenized treasuries product BlackRock USD Institutional Digital Liquidity Fund (BUIDL), recently handed its holders $1.7 million in monthly dividends on Ethereum.

  • BUIDL accounts for about a third of the overall $1.5 billion market, making it the largest, according to research platform rwa.xyz.

Context: This is still a very small segment in the overall crypto space, one that took off as interest rates did, when the idea of putting a yield-bearing asset on-chain became a business-savvy one.

  • See: Paxos's yield-generating stablecoin launch last week.

The big picture: It's all part of a larger movement to make banking hours 24/7, as those tokenized treasuries can be used as collateral for lending and firms supporting a market for them.

What we're watching: Tokenization won't truly take off until more people are using them, according to rwa.xyz's Mac Naggar.

  • And for tokenized treasuries to truly thrive, trading needs to rival existing stablecoin pairs, says Naggar. That hasn't happened yet.
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