21co analyst Tom Wan predicts that the tokenized US Treasury market will reach $3 billion by the end of 2024, driven by increasing adoption among DeFi projects and DAOs. Currently, there are over 15 tokenized US Treasury products available on EVM chains, managing nearly $2 billion in AUM. DeFi projects like Arbitrum and MakerDAO have invested millions in these yield-bearing products, signaling a shift toward real-world assets within the crypto ecosystem.
BlackRock’s BUIDL fund has become the largest tokenized treasury fund, with a market cap of nearly $500 million. This reflects the growing demand for tokenized US Treasuries, which offer risk-free yields without exiting the blockchain ecosystem. The market has seen explosive growth, with over $2 billion in assets tokenized on various blockchains. Wan projects that the market cap could exceed $3 billion by 2024, as more DAOs and DeFi projects adopt these products.
The integration of tokenized US Treasuries into DeFi treasuries represents a significant development in the convergence of traditional finance and blockchain technology. By offering increased liquidity, faster transactions, and lower fees, real-world asset tokenization has the potential to transform the financial landscape. As major financial institutions explore blockchain technology, the adoption of tokenized assets is expected to reshape the future of finance.
Wan believes that the trend of tokenized US Treasuries becoming more popular will continue, as investors seek reliable returns in the volatile crypto market. With notable projects like Arbitrum and MakerDAO allocating significant funds to these products, the sector is poised for substantial growth. The growing interest from financial giants like BlackRock and Securitize further validates the potential of tokenized assets in the mainstream financial sector.
Overall, the rise of tokenized US Treasuries signifies a shift toward diversification and stability in the crypto ecosystem. As DeFi projects and DAOs increasingly incorporate these assets into their treasuries, the market for tokenized US Treasuries is expected to expand rapidly. This trend highlights the transformative potential of real-world asset tokenization, offering a new way for investors to access traditional assets in a decentralized, blockchain-based manner.
