Tokenized US treasuries may hit $3 billion by end of 2024

According to Tom Wan, a research analyst at 21co, the value of tokenized US treasuries is expected to reach $3 billion by the end of 2024. He highlighted that the increasing interest in this asset category by cryptocurrency projects seeking to expand their treasury holdings might contribute to achieving this target.

Wan's forecasts underscore the rise of real-world asset (RWA) tokenization as a significant application of blockchain technology. Traditional financial institutions are showing a growing interest in this area, as evidenced by Goldman Sachs' upcoming launch of its tokenized funds.

As per information provided by Dune Analytics, the combined value of tokenized US treasuries being managed is $1.78 billion. This indicates that the asset category would need to achieve close to a 100% increase over the next 6 months to reach $3 billion. Nevertheless, Wan anticipates that a greater number of Decentralized Autonomous Organizations (DAOs) will venture into investing in tokenized assets in the upcoming months.

DAOs in various crypto projects are now viewing on-chain RWA as a preferred asset class for diversifying their treasuries. Wan pointed out that stablecoins and tokenized US treasuries are their top choices. These assets provide a secure way to invest in yield-bearing assets directly within the crypto ecosystem.

MakerDAO, a DeFi platform and stablecoin issuer, has revealed its intention to allocate $1 billion from its reserves to tokenized US treasuries. MakerDAO has invited protocols to join the initiative. Securitize, Ondo Finance, and Superstate, three prominent platforms for tokenizing US treasuries, have confirmed their participation in the competition.

Prior to MakerDAO, the layer-2 network Arbitrum DAO also invested 35 million ARB valued at $27 million into tokenized RWA protocols. It is anticipated that additional cryptocurrency protocols will choose to pursue similar avenues. Tokenized US treasuries provide crypto projects with the chance to access US treasury yields directly through the crypto ecosystem.