Public blockchains have been used to tokenize $1.08 billion in Treasury notes, as a result of rising interest rates around the world, according to data compiled by 21. co.
The number has risen almost ten times since January 2023, according to Coindesk.
There’s a boom in the market for U.S. Treasury note tokenized
The market value of Treasury notes tokenized via public blockchains like Ethereum, Polygon, Valanche, Stellar, and others has crossed above $1 billion for the first time, according to data tracked by crypto firm 21.co, analyst Tom Wan.
These Tokenized Treasuries are digital representations of U.S. government bonds, that could be traded as tokens on exchange blockchain. Since the announcement on March 20 of an Etheruem based tokenised fund BUIDl by finance giant BlackRock,
Tokenized Treasuries are digital representations of U.S. government bonds that can be traded as tokens on the blockchain. The market value has risen nearly 10-fold since January last year and 18% since traditional finance giant BlackRock announced Etheruem-based tokenized fund BUIDL on March 20, the market value has jumped almost tenfold since January last year and 18% from that date.
As of writing, BUILD is the second-largest such fund, with a tokenized value of $245 million.
Demand for tokenized Treasury has increased sharply in the last two years due to a sharp rise in Treasury yields. The 10-year yield, the so-called risk-free rate, has risen to 4.22% from 1.69% since March 2022, denting the appeal of lending and borrowing the dollar-pegged stablecoins in the decentralized finance market.
Crypto investors can diversify their portfolios by investing in tokenized government bonds, which allow them to settle transactions at any time of day.
