Ethereum Tops Stellar as Tokenized Govt Bond Blockchain

As crypto’s real-world asset (RWA) race gets more intense, the tokenized US treasury market has gained almost 600%, peaking at $698 million, CoinDesk wrote.

Tokenized US treasuries versions have increased nearly sevenfold this year as competition between blockchains and investment offerings intensifies.

New entrants lead treasury market growth

According to data of RWA.xyz, an RWA monitoring platform, the tokenized treasury market grew from around $100 million at the beginning of 2023 to $698 million on October 30. This growth was generated through existing platform expansion as well as new market entrants.

Existing protocols saw a significant increase

Ethereum has toppled Stellar as the leading tokenized government bond blockchain. Polygon, Solana, and other recent entrants have also seen growth.

Existing protocols such as Backed, Maple, and Ondo Finance registered a significant increase over the past few months according to RWA data.

September saw the launch of new protocols such as Tradeteq and Adatp3r, which generated deposits of $4.5 million, resp. $8.5 million.

Solana and Polygon in their heyday

Blockchains such as Solana and Polygon, which entered the space after the Ethereum Mainnet and the Stellar (XLM) network, attracted assets worth over $40 million, industry data shows. According to a representative of RWA.xyz, this reflects “a diversifying blockchain landscape for tokenized assets.”

A new avenue for tokenization

The representative added that permissionless yield-bearing stablecoins have established themselves as a new opportunity for tokenization. These include Mountain Protocol’s USDM and Ondo Finance’s new USDY token.

These stablecoins pass on the earnings from underlying assets directly, which sets them apart from more traditional stablecoins like Tether and USDC.

A very lucrative market

Insiders predict that the tokenized asset market could reach $10 trillion by 2030. Market players spearheaded tokenization of treasuries to integrate blockchain and real-world assets. Crypto investors are attracted by these opportunities for higher returns.