21co analyst Tom Wan believes that tokenized US Treasury bonds will reach $3 billion by the end of 2024 thanks to increased adoption in DeFi projects and Decentralized Autonomous Organizations.
According to Wan, this trend is driven by the need for diversification and stability, especially as high interest rates make these assets attractive.
Currently, there are more than 15 US Treasury bond products tokenized on Ethereum Virtual Machine (EVM) chain , managing nearly $2 billion in assets under management (AUM).
Wan said DeFi projects are increasingly diversifying their treasuries to integrate tokenized US Treasury bonds and stablecoins – this signals a major shift towards real-world assets ( RWA ). in the cryptocurrency ecosystem.
Prominent examples include Arbitrum and MakerDAO , which allocated $27 million and $1 billion, respectively, to these yield-generating products. These investments are part of a broader strategy to provide risk-free returns without leaving the blockchain ecosystem, backed by major financial corporations such as BlackRock and Securitize.
BlackRock's Digital Liquidity Liquidation , known as BUIDL, recently became the largest tokenized Treasury bond fund, surpassing Franklin Templeton's BENJI fund.
BUIDL's market Capital has skyrocketed to nearly $500 million since its launch earlier this year – reflecting growing demand for these assets.
The tokenized US Treasury bond market has experienced explosive growth, with more than $2 billion in assets tokenized on blockchains such as Ethereum, Polygon , and Solana .
Wan said this growth is expected to continue, with forecasts suggesting the market Capital for tokenized US Treasury bonds could exceed $3 billion by the end of 2024.
The integration of tokenized US Treasury bonds into DeFi treasuries represents a significant development in the convergence between traditional finance and blockchain technology. As more DAOs and DeFi projects adopt these products, the industry is poised for significant growth, attracting investors seeking reliable returns in volatile crypto markets.
This trend highlights the potential of real-world asset tokenization in changing the financial landscape, providing increased liquidation , faster transactions and lower fees. With major financial institutions exploring blockchain technology, the adoption of tokenized assets will reshape the future of finance.
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Thach Sanh
According to CryptoSlate
