Over $1 Billion of U.S. Treasury Securities (UST) Tokenized on Public Blockchain

The tokenized US Treasury market is booming.

The market value of Treasury securities tokenized through public blockchains such as Ethereum, Polygon, Avalanche and Stellar has hit $1 billion for the first time, according to data tracked by Tom Wang, an analyst at crypto firm Beyond.

Tokenized Treasuries are digital representations of U.S. Treasuries that can be traded as tokens on the blockchain. Its market value has increased nearly 10 times compared to January last year, and is up 18% since traditional financial giant BlackRock announced its Ethereum-based tokenized fund BUIDL on March 20th.

At the time of writing, BUILD was the second largest such fund, with a tokenized value of $245 million, ahead of Franklin Templeton’s Franklin Onchain U.S. Government Money Fund, which led the pack. (FOBXX) (of which one share is represented by the BENJI token). The amount of deposits is $360.2 million.

“It just so happens that a total of $1 billion in U.S. government debt has been tokenized on a public blockchain. Blackrock’s BUIDL increased 400% from 40 million to 240 million supplies in one week,” Wang said. Posted in X. “OndoFinance is currently the largest holder of BUIDL, holding 38% of the total supply. Currently, Ondo’s OUSG is fully supported by his BUIDL.”

The rapid rise in US Treasury yields over the past two years has increased demand for its tokenized version. The 10-year bond yield, the so-called risk-free rate, has risen from 1.69% to 4.22% since March 2022, undermining the attractiveness of dollar-pegged stablecoin lending in decentralized finance markets.

Investing in tokenized US Treasuries can help crypto investors diversify their portfolios and allow them to close trades at any time.

“The beauty of tokenization, [is] Transactions can be settled 24 hours a day, 7 days a week,” Wang said. Said.

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