Market Reaction to Institution-Led RWA On-Chain Signals
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Cointelegraph reported on the 26th that the Canton token has surged by approximately 27% over the past week, significantly outperforming the broader cryptocurrency market, which has been flat over the same period. This surge was fueled by an announcement on the 17th from the Depository Trust & Clearing Corporation.
DTCC outlined a plan to tokenize a portion of its U.S. Treasury securities held in custody through its subsidiary, Depository Trust Company, on the Canton Network. DTCC oversees the post-trade infrastructure for the U.S. securities market, and its subsidiaries processed approximately $3.7 trillion (approximately KRW 4,800 trillion) worth of securities transactions last year.
Frank La Salla, CEO of DTCC, stated, "This collaboration is intended to establish a roadmap for leveraging high-value tokenization, starting with U.S. Treasuries and expanding to a broader range of DTC-eligible assets." The market is seeing DTCC's direct involvement as a signal of institutional confidence in RWA tokenization.
The Canton Network is a hybrid blockchain designed to enable regulated financial institutions to issue and settle tokenized real-world assets. Canton tokens will be used for network operations and transaction processing. Since the announcement, Canton has exhibited a contrasting trend, with major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) exhibiting downward or flat trends.
Tokenized real-world assets (RWAs) are emerging as a key growth driver for the cryptocurrency industry this year. According to RWA.xyz, the total on-chain value of tokenized real-world assets has expanded from approximately $5.6 billion at the end of last year to approximately $19 billion today. Within this, the value of U.S. Treasury-backed RWA products has grown from approximately $3.9 billion at the beginning of the year to approximately $9 billion today.
A prime example is BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), which provides on-chain exposure to short-term U.S. Treasury securities and has grown to approximately $1.7 billion in assets under management. Ondo Finance and Franklin Templeton also manage tokenized Treasury products, with approximately $830 million and $798 million, respectively.
“The trend of moving traditional assets on-chain is a turning point that is forcing existing financial institutions to undergo a digital transformation,” said Keith Grossman, CEO of MoonPay. “RWA tokenization is entering a phase that will reorganize the entire financial infrastructure.”
Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr
