Tokenized US treasuries are projected to reach a valuation of $3 billion by the end of 2024, emphasizing the benefits and expanding adoption of financial asset tokenization. To achieve this milestone, tokenized treasuries need to almost double in value within the year. Research strategist Tom Wan of 21.co asserts that the $3 billion target is attainable due to decentralized autonomous organizations increasingly diversifying their portfolios with tokenized US treasuries.
Why Is Tokenization Growing?
Global companies such as Securitize and BlackRock are driving the surge in tokenized US treasuries. On July 15, Tom Wan highlighted in an X post that these projects could push the total market value of tokenized treasuries to the $3 billion mark by 2024. Wan’s projections are supported by data from the blockchain analytics platform Dune, which shows that tokenized US government bonds currently manage assets worth over $1.6 billion.
How Are Market Leaders Contributing?
BlackRock’s BUIDL-coded USD Institutional Digital Liquidity Fund has emerged as the largest tokenized treasury fund, surpassing Franklin Templeton’s fund. Within six weeks, BUIDL achieved a market value exceeding $375 million, and it now holds more than $528 million in assets, capturing a market share of over 28.8%. Wan believes that BlackRock’s fund will significantly enhance inflows into tokenized treasury bonds, offering a diversified approach to accessing risk-free US treasury yields without leaving the blockchain ecosystem.
Insights for Investors
- Tokenized US treasuries are seeing increased adoption by decentralized autonomous organizations.
- BlackRock’s BUIDL fund has quickly become a market leader in tokenized treasuries.
- Tokenization is being recognized as a significant future market opportunity, potentially reaching multi-trillion-dollar valuations by 2030.
- Major financial institutions like Goldman Sachs are planning to introduce new tokenization products in response to growing customer interest.
A report by the Global Financial Markets Association and Boston Consulting Group anticipates that the global value of tokenized illiquid assets could hit $16 trillion by 2030. Similarly, Citigroup analysts predict that $4 trillion to $5 trillion worth of tokenized digital securities will be issued by the same year. Major financial firms like Goldman Sachs are preparing to launch several new tokenization products by the end of the year, underscoring the increasing interest from customers and the potential for substantial market growth.
