21co analyst sees tokenized US treasuries hitting $3 billion by year-end

Share This Post

21co analyst Tom Wan believes tokenized US treasuries will hit $3 billion by the end of 2024 amid rising adoption among DeFi projects and Decentralized Autonomous Organizations (DAOs).

According to Wan, the trend is driven by a need for diversification and stability, especially as high interest rates make these assets attractive.

Currently, there are over 15 tokenized US Treasury products available on Ethereum Virtual Machine (EVM) chains, managing nearly $2 billion in assets under management (AUM).

Rising adoption

Wan said DeFi projects are increasingly diversifying their treasuries to incorporate tokenized US Treasuries and stablecoins — signaling a major shift toward real-world assets (RWAs) within the crypto ecosystem.

Notable examples include Arbitrum and MakerDAO, which have allocated $27 million and $1 billion, respectively, to these yield-bearing products. These investments are part of a broader strategy to provide risk-free yields without exiting the blockchain ecosystem, facilitated by financial giants like BlackRock and Securitize.

BlackRock’s USD Institutional Digital Liquidity Fund, known as BUIDL, has recently become the largest tokenized treasury fund, surpassing Franklin Templeton’s BENJI fund.

BUIDL’s market cap has soared to almost $500 million since its launch earlier in the year — reflecting the growing demand for these assets.

Poised for growth

The tokenized US Treasury market has experienced explosive growth, with over $2 billion in assets tokenized on blockchains such as Ethereum, Polygon, and Solana.

Wan said this growth is expected to continue, with projections indicating that the market cap for tokenized US Treasuries could exceed $3 billion by the end of 2024.

The integration of tokenized US Treasuries into DeFi treasuries represents a significant development in the convergence of traditional finance and blockchain technology. As more DAOs and DeFi projects adopt these products, the sector is poised for substantial growth, attracting investors seeking reliable returns in the volatile crypto market.

The trend highlights the potential for real-world asset tokenization to transform the financial landscape, offering increased liquidity, faster transactions, and lower fees. With major financial institutions exploring blockchain technology, the adoption of tokenized assets is set to reshape the future of finance.

The post 21co analyst sees tokenized US treasuries hitting $3 billion by year-end appeared first on CryptoSlate.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Polkadot (DOT) Price Stability Fuels Hopes For Short-Term Recovery

Polkadot (DOT) has been quietly building a strong foundation, with its price stabilizing after a period of volatility This consolidation phase often serves as a launching pad for a potential upward

Tim Draper: Bitcoin Goes to Infinity Against the Dollar—$250K BTC Is Just the Start

Tim Draper envisions a future where bitcoin dominates, fiat crumbles, and people scramble to convert dollars before they become worthless, calling BTC the ultimate global currency Tim Draper Says

Solana Inflation Reform Fails As Vote Ends In Defeat

In a remarkable showcase of on-chain governance, a proposal aimed at cutting Solana’s inflation rate by 80%—identified as SIMD-228—has officially failed to meet the vote threshold required for

Dogecoin Recovery In Sight? Key Metrics Predict A Strong Bounce

After months of struggle in gathering momentum, Dogecoin (DOGE) might be about to undergo a dramatic price reversal Monitoring the movements of the meme coin, analysts believe it has hit a turning

Republican Thomas Massie Embraces Bitcoin Amid Trump Feud Over Fiscal Clashes

US Representative Thomas Massie, a Republican hailing from Kentucky, has recently disclosed that he received more than $261,000 in contributions to his campaign This week, the staunch advocate for

US Congressman To Introduce New Crypto Bill Protecting Trump’s Strategic Bitcoin Reserve

Recent reports revealed that another member of the US House of Representatives will introduce a new bill on March 14 to codify US President Donald Trump’s executive order for a Strategic Bitcoin