The tokenization of US Treasuries has expanded dramatically, with a 641% surge in value reported by CoinGecko for the year 2023. Traditional financial institutions have been instrumental in this increase. CoinGecko’s 2024 analysis underscores significant advancements in transforming real-world assets into blockchain-based tokens.
Market Boost for Tokenized Assets
The market for tokenized US securities experienced a leap from $114 million to $845 million in just twelve months. These digital assets, representing US Treasury securities on blockchain, have gathered increasing interest. Notably, Ondo’s OUSG token has caught attention by embodying ownership in a US Government Bond Fund.
Franklin Templeton leads the charge as the predominant issuer of these digital treasuries, with a market command of over 38%. Beyond tokenized treasuries, the firm is diversifying into cryptocurrency ETFs, proposing an Ethereum-focused ETF to the SEC. Additionally, protocols offering stablecoins backed by US Treasury bills, like Mountain Protocol, have seen their market value skyrocket.
Tokenization Trends and Industry Insights
While Ethereum hosts the majority of these tokens, Stellar serves as a platform for nearly 39% of the market, thanks to issuers like Franklin Templeton. Despite the robust growth in 2023, the expansion pace of tokenized treasury bonds has decelerated in 2024, with a modest 1.9% increase noted in January.
The report doesn’t just stop at treasuries; it also highlights that the overall market value for commodity-backed tokens, including gold, reached $1.1 billion. Dominating this space, Tether Gold and PAX Gold account for a significant portion of the tokenized precious metals market.