According to TechFlow, 21co analyst Tom Wan believes that as the adoption of DeFi projects and DAOs increases, tokenized U.S. Treasury bonds will reach $3 billion by the end of 2024.
Wan pointed out that this trend is driven by the need for diversification and stability, especially high interest rates make these assets more attractive. Currently, there are more than 15 tokenized U.S. Treasury products on the Ethereum virtual machine chain, managing nearly $2 billion in assets.
Notable examples include Arbitrum and Maker DAO, which allocated $27 million and $1 billion to these products, respectively. Driven by financial giants such as BlackRock and Securitize, these investments are part of a broader strategy to provide risk-free returns.
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has become the largest tokenized Treasury fund, with a market cap of nearly $500 million. The tokenized U.S. Treasury market has over $2 billion in assets tokenized on blockchains such as Ethereum, Polygon, and Solana.
Wan said this growth is expected to continue, predicting that the market value of tokenized U.S. Treasuries could exceed $3 billion by the end of 2024. The integration of tokenized U.S. Treasuries with DeFi Treasuries represents a major development in the integration of traditional finance and blockchain technology.
This trend highlights the potential of tokenization of real-world assets to change the financial landscape, providing higher liquidity, faster transaction speeds and lower fees. As major financial institutions explore blockchain technology, the adoption of tokenized assets will surely reshape the future of the financial industry.