Data tracked by 21.co, a Crypto analyst firm revealed that about $1.08 billion in treasury notes have been tokenized through the public blockchain.
According to CoinDesk, the number has risen by nearly 10-fold since January 2023 amidst increased interest worldwide.
These Treasury notes are tokenized through public blockchains like Ethereum, Polygon, Valanche, and Stellar, and their market value has crossed above $1 billion for the first time according to Tom Wan, an analyst at crypto firm 21.co.
The market value of tokenized US treasury Notes increased by 10-fold since January 2023 and by 18% since global finance giants Blackrock announced an Ethereum-based tokenized fund BUIDL on March 20.
Blackrock’s BUILD is the second largest of such funds with a tokenized value of $245 million. The largest remains Franklin OnChain U.S. Government Money Fund (FOBXX) with $360.2 million in deposits.
The rise in demand for Treasury Yields has led to the demand for its tokenized version in the decentralized market. The 10-year yield it comes with has dented the appeal of lending and borrowing in dollar-pegged stablecoin.
Investing in tokenized Treasuries can help crypto investors diversify their portfolios, allowing them to settle transactions on any given day.
Recommended reading: CBN sells another N1.58 trillion in Treasury Bills, interest rate at 19% for 364-day bill
What to Know
Tokenized Treasuries are digital representations of U.S. government bonds that can be traded as tokens on the blockchain.
Blackrock the world’s leading financial institution foray into the Crypto market has boosted the credibility of Cryptocurrency yielding positive numbers across the decentralized market.
Recommended reading: Foreign investors dominate bids for OMO, treasury bills by 75% – CBN
