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16/07/24
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Analyst Predicts Value of Tokenized U.S. Treasurys
Financial asset tokenization continues to attract the attention of institutions due to its benefits. Goldman Sachs, for instance, wants to launch three new tokenization products in 2024, as more clients are interested. It has been revealed that tokenized U.S. Treasurys may hit $3 billion by the end of this year.
Tom Wan, a research strategist at 21.co., noted that this is achievable because decentralized autonomous organizations continue to diversify their holdings into tokenized US Treasurys. Likewise, BlackRock and Securitize offering tokenized products is another factor to be considered.
“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,” said Wan. Dune data shows that total assets under management for tokenized U.S. government securities is more than $1.6B.
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) overtook Franklin Templeton’s fund to become the largest tokenized Treasury fund within 6 weeks. BUIDL was able to amass market cap valued at more than $375 million and currently holds more than 28.8 percent of the market share.
Wan believes that BUIDL will significantly enhance inflows into tokenized Treasurys: “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.”
The Global Financial Markets Association (GFMA) and Boston Consulting Group released a report noting that tokenized illiquid assets may achieve a worldwide value of $16T by 2030. According to Citigroup’s forecast, tokenized digital securities valued at $4T to $5T will be minted by 2030.
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