Tokenized U.S. Treasury Market Could Reach $3 Billion in 2024

The volume of the tokenized U.S. Treasury market could hit $3 billion by the end of 2024, thanks to the efforts of large TradFi companies. Experts say the global value of the tokenized real-world asset (RWA) market could reach between $4 trillion and $16 trillion by 2030.

Tom Wan, Analyst at 21.co, the parent company of 21Shares, shared data suggesting that the market for tokenized U.S. Treasuries could reach $3 billion by the end of this year.

According to Wan, the growth catalysts are the popularity of using tokenized U.S. Treasuries and stablecoins for asset diversification by decentralized autonomous organizations (DAO). The analyst also noted that thanks to TradFi giants’ products, tokenized securities market capitalization may double by the end of this year.

In late March 2024, the market volume of tokenized U.S. Treasuries exceeded $1 billion for the first time.

According to Dune, as of May 17, 2024, the capitalization of the tokenized U.S. Treasury market was $1.6 billion. The largest fund is BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which accounts for more than 29% of the market. In just six weeks, BUIDL managed to overtake Franklin Templeton’s BENJI fund, which was previously the undisputed leader of the sector. BUIDL has a capitalization of over $528 million, while BENJI has a capitalization of just over $400 million.

Tom Wan noted that BUIDL’s popularity is a consequence of Securitize and BlackRock’s strategy of diversifying investment portfolios with the help of risk-free U.S. Treasury yields. This way, investors don’t need to leave the blockchain ecosystem.

Major consulting companies highly evaluate the prospects of tokenization of financial assets. The report of the Global Financial Markets Association (GFMA) and Boston Consulting Group says that the global value of tokenized illiquid assets by 2030 will grow to $16 trillion. Citigroup analysts predict that the market of tokenized assets will grow to $4–5 trillion over the next six years.

In May 2024, the capitalization of the market for tokenized real-world assets (RWA) reached $8.86 billion, making the sector the most actively growing in the crypto market.

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