Tokenised treasury bonds hit $2 billion milestone

The market for tokenised U.S. Treasury bonds has crossed a significant milestone, now exceeding $2 billion in value.

This marks a substantial increase of over 1,872% since the beginning of 2023, when the market was valued at $104.93 million.

The recent growth highlights the expanding role of blockchain-based tokenised assets in traditional finance.

Among the projects contributing to this surge, Blackrock and Franklin Templeton’s tokenised funds are at the forefront, together holding 44.95% of the total market value, according to data from rwa.xyz.

The combined value of tokenised U.S. Treasuries, bonds, and cash-equivalents has reached $2.07 billion as of the end of August.

According to archived data, Blackrock’s USD Institutional Digital Liquidity Fund (CRYPTO:BUIDL) leads with a market cap of approximately $502.54 million.

Franklin Templeton's Onchain U.S. Government Money Fund, known as BENJI, follows closely with a market cap of $427.94 million.

Ondo Finance is also a key player, with its U.S. Dollar Yield project valued at $384.45 million and its Short Term U.S. Government Bond Fund at $221.26 million.

Ondo (CRYPTO:ONDO), in total, has a combined market cap of $605.7 million, surpassing both Blackrock and Franklin Templeton.

Of the $2.07 billion total, $1.5 billion is minted on the Ethereum (CRYPTO:ETH) blockchain, making it the dominant platform for tokenised bonds.

Stellar (CRYPTO:XLM) and Solana (CRYPTO:SOL) also play significant roles, holding $437.6 million and $60.6 million, respectively.

The U.S. leads geographically with $1.65 billion in tokenised funds, followed by the Cayman Islands with $225 million and the British Virgin Islands with $114.05 million.

Other notable jurisdictions include Singapore, Switzerland, Germany, and Liechtenstein.

The rapid growth in the tokenised U.S. Treasury and bond market throughout 2024 suggests a promising future for tokenised real-world assets (RWAs).

Institutional giants like Blackrock and Franklin Templeton continue to support blockchain-based assets, indicating a shift towards more diversified and decentralised financial systems.

As more financial instruments become tokenised, the potential for growth in this sector appears boundless.