BlackRock and Franklin Templeton Boost Tokenized US Treasuries
High interest rates and demand for secure on-chain assets propel tokenized US treasuries to $1.64 billion, with BlackRock's BUIDL overtaking Franklin Templeton's BENJI.
The tokenized US treasuries market has grown over 1,000% due to high interest rates and a surge in demand for secure, high-yielding on-chain assets. This has pushed the market to $1.64 billion, with BlackRock’s BUIDL fund overtaking Franklin Templeton’s BENJI as the largest tokenized treasury fund.
High interest rates have driven demand for tokenized US Treasuries, offering investors a safe, high-yielding option. The value of these products has soared by over 1,000% since early 2023, reaching $1.64 billion by June. BlackRock and Franklin Templeton are key players in this market.
BlackRock’s BUIDL fund, now worth $481.42 million, has surpassed Franklin Templeton’s BENJI fund at $357.68 million. BUIDL’s success highlights the growing adoption of real-world asset (RWA) tokenization, with major institutions like Goldman Sachs and JPMorgan investing in these technologies.
Tokenization creates digital tokens representing real-world assets, offering benefits like increased liquidity, faster transactions, and lower fees. Tokenized treasuries are used increasingly as collateral, such as Superstate’s USTB and BUIDL on FalconX Network, and Ondo Finance’s USDY on Drift Protocol.
Moody’s has awarded an “A-bf” bond rating to Hill Lights International Limited’s TBILL tokens, marking them as investment-grade. OpenEden collaborates with various financial apps to provide access to US T-bill yields across different blockchains.
Stablecoins have been crucial to the tokenization sector’s growth. The value of tokenized non-stablecoin assets has doubled to over $3 billion since early 2023. The Hong Kong Monetary Authority estimates an additional $3.9 billion in tokenized bonds. Stablecoins and digital tokens make transactions more efficient and cost-effective, attracting major financial institutions.
Major companies are recognizing the benefits of tokenization. A Coinbase report found that 86% of top companies see the advantages, and 35% plan tokenization projects. Commodities like gold play a significant role, representing nearly $1 billion in tokenized assets.
Tokenization is set to revolutionize the financial sector, providing faster, more efficient, and secure services. As more traditional financial giants explore blockchain technology, tokenization will drive growth and innovation. The rapid expansion of tokenized assets shows the transformative potential of blockchain in modern finance.
The remarkable growth of the tokenized US treasuries market, driven by high interest rates and increasing demand for secure, high-yielding on-chain assets, marks a significant shift in the financial industry. With BlackRock’s BUIDL fund leading the way, tokenization offers increased liquidity, faster transactions, and lower fees. The future of finance is being reshaped by blockchain technology, promising a more efficient and secure financial ecosystem.
