assets

Tokenization of Real-World Assets Surges, Reaching Record High

The Big Whale

— 1 min read
  • The market value of on-chain real-world assets (RWAs) continues to rise, reaching over $12 billion.
  • Tokenization of RWAs makes traditionally illiquid markets easier to trade and streamlines the settlement process.
  • Tokenized U.S. Treasuries have surpassed $2.2 billion in market value, with BlackRock's BUILD leading at $520 million.
  • The growth of tokenized Treasuries is driven by high U.S. interest rates, but rate cuts may impact demand.
  • The on-chain private credit market is worth $9 billion, with Figure accounting for most of the market value.
  • RWAs offer stability and access to previously challenging asset classes, contributing to an evolving financial ecosystem.

Summary :
The market value of on-chain real-world assets (RWAs), excluding stablecoins, has reached a record high of over $12 billion, according to a report by Binance Research. Tokenization of assets like real estate, government bonds, stocks, and intangible assets is making traditionally illiquid markets more accessible and efficient. Tokenized treasury funds, such as BlackRock's BUILD, have surpassed $2.2 billion in market value, driven by high U.S. interest rates. However, the appeal of tokenized treasuries may decrease if the Federal Reserve cuts rates in the coming months. Binance Research also highlighted the growth of on-chain private credit, tokenized commodities, and real estate. The tokenization of assets offers financial advisors the opportunity to enhance client portfolios and provide access to previously challenging asset classes. RWAs have shown more stable performance compared to cryptocurrencies, making them a valuable addition to digital asset portfolios. The tokenized treasury market is expected to continue growing, with potential for institutions to utilize tokenized treasuries for treasury management. As interest rates decrease, there may be a shift in demand towards tokenizing different asset classes, such as private credit, to compensate for the drop in risk-free yields.

Sources :

- Coindesk
- Coindesk

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