The market capitalization of top security tokens is at a record high of about $1.2 billion, according to data shared via Dune. The increase has been mainly driven by security tokens issued by Ondo Finance, worth $395 million, and BlackRock, valued at $524 million.
Data from the Security Token Market, which tracks over 600 tokens across 35 marketplaces, indicates that the aggregate market cap of security tokens hit a record high of $39.5 billion in June.
https://stomarket.com/charts
Security tokens are blockchain-based digital assets representing ownership of real-world securities that are regulated by financial watchdogs. For example, companies can tokenize their shares and sell these via digital securities exchange venues.
The largest security token by market cap is the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which was launched in March 2024. BUIDL is issued on Ethereum via Securitize, a leading tokenization platform.
BUIDL has a constant price of $1 and pays daily accrued dividends to holder’s wallets every month. The fund is invested in cash, U.S. Treasury notes, and repurchase agreements. Holders can transfer their tokens only to pre-approved investors.
Meanwhile, Ondo’s flagship security token, USDY, has a market cap of $323 million, also at a record high.
USDY, priced at $1.05, is a tokenized note backed by short-term US Treasuries and bank demand deposits. The token is accessible to non-US investors and is transferable onchain 40-50 days after purchase.
DefiLlama data shows that the total value locked (TVL) in Ondo Finance is at a record high of $566 million, up from $187 million at the beginning of the year.
Security tokens are part of the broader real-world assets (RWA) sector, which includes other tokenized assets that are necessarily regulated.
The TVL in RWA projects has doubled from June 24, being on track to update the record high reached in October 2023.
Stay on top of things:
Subscribe to our newsletter using this link – we won’t spam!
Follow us on X and Telegram.
The post Security Tokens’ Market Cap Reach New Record, RWA Sector Revives appeared first on NFTgators .
