April 19, 2024
Latest Cryptocurrency News

Tokenized Treasurys Surge in 2023, Growth Slows in 2024, CoinGecko Reports

Tokenized Treasurys in the United States increased by 641% in 2023, according to CoinGecko, a well-known digital asset data tracker. According to CoinGecko’s 2024 study “Rise of Real World Assets in Crypto,” this rise represents a significant advancement in the field of real-world asset (RWA) tokenization.

Franklin Templeton Leads the Way in Tokenized Treasurys Issuance

The paper says that tokenized Treasurys, which are blockchain-based digital tokens reflecting US Treasury securities, have increased from $114 million in January to a significant $845 million by the end of 2023. Franklin Templeton emerged as a big player, issuing $332 million in tokens through its On-Chain U.S. Government Money Fund, accounting for 38.6% of the market.

Franklin Templeton, known for its pioneering ventures in the digital asset space, notably launched a spot Bitcoin ETF earlier in 2023, becoming one of the 10 ETF issuers in the United States. The company is also eyeing the launch of an Ethereum ETF, having submitted an application to the U.S. Securities and Exchange Commission in February.

A list of companies issuing tokenized U.S. Treasurys. Source: CoinGecko

Ethereum Dominates, but Stellar Emerges as a Challenger

While Ethereum remains the primary network for tokenized U.S. Treasurys, hosting 57.5% of the tokens, platforms like Stellar are gaining ground, accounting for 39% of the market. Companies like Franklin Templeton and WisdomTree Prime have ventured into tokenized securities on Stellar, diversifying the ecosystem.

Market cap of commodity-backed tokens. Source: CoinGecko

Despite the remarkable surge witnessed in 2023, growth in tokenized Treasurys slowed down in 2024, with a mere 1.9% increase recorded in January. As of February 1, the market capitalization stood at $861 million. CoinGecko’s report also sheds light on the burgeoning market of commodity-backed tokens, which reached a market capitalization of $1.1 billion, with projects like Tether Gold (XAUT) and PAX Gold (PAXG) dominating the tokenized precious metals sector. Additionally, a new initiative has commenced tokenizing uranium, offering digital redemption of this valuable commodity.

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