The market value of tokenized US Treasury this week surpassed the $ 5 billion for the first time, RWA.xyz data shows, as the demand for blockchain-based assets in the real world (RWAs) accelerates.
The asset class grew by $ 1 billion over only two weeks, led by influx to asset management giant Blackrocks and the digital asset company Securitize’s Market Leading Buidl.
Crypto -Tokens, supported by US Treasury, is at the forefront of the tokenization trend that has captivated a number of global economic Behemoth’s and digital asset companies. Fidelity Investments is the latest major US asset manager seeking to create a tokenized money market fund that filed for regulatory approval last week to launch its Fidelity Treasury Digital Liquidity at Ethereum Blockchain.
“We see the promise of tokenization and its ability to be transformative to the financial sector by operating transaction efficiency with access and awarding of capital across markets,” Cynthia Lo Bessette, head of FIDELity Digital Asset Management, told Coindesk in a statement.
Tokenized treasuries allow investors to park inactive cash on blockchains to earn a dividend – as with a money market fund. Increasingly, they are also used as a reserve assignment for decentralized funding (defi) protocols. Another use of use with significant potential is to use these symbols as security in trade and asset management.
“Looking at use cases, placing a tokenized asset as non-contact security to meet the requirements for margin improve operational infrastructures and improve capital efficiency,” she added.
Her words repeat Donna Milrods, Chief Product Officer of State Street, another Boston-based asset management and bank giant examining the tokenization of bonds and money market funds. She said in a previous interview that security tokens could have helped to avoid or relieve, for example, the “responsible” crisis in 2022, which allowed pension funds and asset managers to use the money market fund for margin calls instead of liquidating their assets to raise cash.
Read more: Tokenization allows more effective security transfers, digitally asset, Euroclear and World Gold Council found in the pilot project
The growth trend doesn’t stop soon.
Securitize said earlier today that Buidl is about to surpass $ 2 billion in assets in early April from $ 1.7 billion at the moment. Meanwhile, Spark, the ecosystempartner of DAI StableCoin issuer Sky (formerly Makerdao) is planning to award $ 1 billion to Buidl, Superstates USTB and Centrifuge’s findings managed with Anemoy and Janus Henderson.
