Market Cap of Tokenized U.S. Treasuries Grew by 641% in 2023

The market capitalization of U.S. tokenized government bonds grew from $114 million to $845 million in 2023. The growth rate slowed down significantly in 2024. Franklin Templeton is the largest issuer of this asset class, accounting for about 38% of the market.

According to the CoinGecko report, the tokenized U.S. government bonds segment experienced an explosive growth of 641% in 2023, with their market capitalization reaching $861 million in early 2024.

In January 2023, the market cap of tokenized U.S. Treasury bonds was only $114 million. But in December 2023, the market volume increased to $845 million. More than 57.5% of tokenized U.S. government bonds are issued on the Ethereum network and another 39% on the Stellar network.

About 38.6% of the market is accounted for by assets issued by Franklin Templeton’s On-Chain U.S. Government Money Fund. The financial firm issued over $332 million worth of tokens, making it the largest issuer of tokenized U.S. government bonds.

Analysts also noted Mountain Protocol and Ondo Finance as major market participants. During the year, they issued USDM and USDY stablecoins with market capitalizations of $154 million and $132.4 million, respectively.

The sector’s growth rate slowed down significantly this year. For example, in January 2024, the tokenized bonds market cap grew by only 1.9%. According to CoinGecko analysts, the primary catalyst for the sector’s growth is the increased interest of financial companies in the RWA market. As of February 1, 2024, the market capitalization of tokenized RWAs amounted to $1.1 billion.

Investors in Franklin Templeton recently received a note in which the company’s analysts recognized the high investment potential of meme coins.

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