According to RWAxyz data, tokenized US Treasuries exceeded $3 billion in total value. This market had surpassed $2 billion just 90 days ago. This increase is considered a result of Hashnote’s USYC success. At the beginning of 2024, the total value of tokenized bonds was under $750 million, representing a 300% increase on an annual basis.
Tokenized Assets
According to the RWAxyz analytics platform, 2024 has been an important year for the tokenization of assets. The total market value of tokenized assets increased by 32%. Tokenized US Treasuries, in particular, have surpassed $3 billion in just 90 days, a huge milestone.
“The success of Hashnote’s USYC has contributed to the rapid growth of the tokenized bond market.” – RWAxyz
Different classes of tokenized assets are rapidly expanding, with the exception of stablecoins. The adoption of evolving regulatory frameworks in regions such as the US, the Middle East and Hong Kong has enabled traditional financial institutions to engage in greater experimentation in the space and increased institutional interest. Recently, Chainlink $27.3has integrated with Coinbase’s Project Diamond to enable cross-network interoperability for tokenized assets.
According to RWA, there has been significant activity in the regulatory space in 2024, particularly on stablecoins. While national frameworks were being formed in Asia, MiCA regulations in the EU completed the policy draft. There is active lobbying for stablecoin regulation in the US. Regulation of tokenized US Treasury Bonds and real assets is still in the exploratory stage, and regulatory-industry sessions are ongoing.
Tokenized US Treasury Securities
Since the beginning of 2024, short-term US bonds have performed best in tokenized markets. Market value increased by 179% for all products. These gains have been fueled in part by higher interest rates post-COVID. However, the Federal Reserve is expected to change policy and interest rates will fall; This may cause investors to re-evaluate their portfolios. RWA analysts note that lower rates could present new opportunities for tokenized U.S. Treasuries.
The main focus of tokenized asset issuers over the last few years has been to augment traditional financial products in digital format. Once the necessary infrastructure is largely in place, issuers can focus on the unique advantages that tokenization provides. These benefits include 24/7 liquidity, cross-collateralization for trade margin, and inherently compounding and interoperable asset custody capabilities.
New technological developments and regulatory clarity will play an important role in shaping the adoption and market structure of tokenized assets in the last quarter of 2024. These developments may also impact how tokenization is perceived globally and create new regulatory premises.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
