Tokenized United States treasuries are projected to reach $3 billion by the end of 2024, highlighting the growing benefits and widespread adoption of financial asset tokenization.
To achieve the $3 billion mark by year-end, tokenized treasuries must nearly double their current value.
This growth is driven by decentralized autonomous organizations (DAOs) increasingly diversifying their holdings into tokenized US treasuries, says Tom Wan, a research strategist at 21.co.
The anticipated growth to $3 billion is supported by major players like Securitize and BlackRock. In a July 15 X post, Wan noted:
“With the two projects allocating to tokenized US treasury, we could be seeing the total market cap of tokenized US treasury increasing to $3B+ by the end of 2024.”
Data from Dune shows that tokenized US government securities have already accumulated over $1.6 billion in total assets under management (AUM).
BlackRock’s USD Institutional Digital Liquidity Fund, tickered BUIDL, has emerged as the largest tokenized treasury fund, surpassing Franklin Templeton’s fund.
In just six weeks, BUIDL reached over $375 million in market capitalization, now valued at over $528 million and holding a 28.8% market share.
Wan believes BlackRock’s fund will significantly boost inflows into tokenized treasuries.
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He explained:
“As the strategy laid out by Securitize and Blackrock, they intend to provide diversification for the crypto ecosystem to access risk-free US treasury yield without needing to leave the blockchain ecosystem.”
Tokenization is seen as a potentially massive market opportunity.
According to the Global Financial Markets Association (GFMA) and Boston Consulting Group, the global value of tokenized illiquid assets could grow to $16 trillion by 2030.
Citigroup analysts offer a more conservative estimate, predicting that an additional $4 trillion to $5 trillion worth of tokenized digital securities will be minted by 2030, as stated in a 2023 report.
Major companies are increasingly recognizing the potential of tokenization. For instance, Goldman Sachs plans to launch three new tokenization products later this year, driven by rising client interest.
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