Crypto: RWAs propel Treasury Bills to over $1.5 billion

The tokenized assets sector backed by real-world assets (RWA) is experiencing rapid growth in 2024, driven by increasing demand for tokenized US Treasury bonds with a capitalization exceeding $1.5 billion, attracting investors seeking innovative crypto opportunities.

A new growth lever for RWAs

The year 2024 marks a major turning point for the emerging RWA sector. Since the beginning of the second quarter, this niche has shown rapid growth of over 30%, largely fueled by investors’ voracious appetite for tokenized Treasury bonds.

The flagship of this new generation of assets, the BlackRock USD Institutional Digital Liquidity Fund ($BUIDL), has seen its capitalization soar by 65% in the last three months. This momentum has propelled the total value of tokenized Treasury bonds beyond the psychological cap of $1.5 billion.

Its main competitor, the Franklin Templeton Onchain US Government Money Fund ($FOBXX), is not lagging behind with an impressive increase of 27% over the same period.

The DeFi protocol Ondo Finance, a key player in RWAs, also illustrates this upward trend. Its total value locked has increased from $221 million in April to $507 million at the end of June, representing a jump of nearly 130%.

A strong signal of investor enthusiasm for this new class of crypto assets backed by tangible assets. The native token ONDO has also climbed by 68% since the end of March 2024.

A new frontier for Crypto investment

While the tokenized commodities and stablecoins sectors have remained relatively stable, tokenized Treasury bonds have concentrated the majority of investment flows in recent months. This appetite highlights investors’ attraction to these hybrid digital assets blending tradition and innovation.

With this record capitalization, the tokenized Treasury bond segment reaches a major milestone, establishing itself as the spearhead of the nascent RWA universe. 

A movement that could well continue, with institutional and retail investors gradually adopting these hybrid financial instruments that combine traditional finance and the crypto world.