Report from #Binance Reveals RWA Tokenization Growth of $12 Billion
The tokenization of U.S. Treasuries has been the main driver behind the market value of tokenized real-world assets (RWAs) surpassing $12 billion, according to a research by Binance Research in September 2024.
Traditional financial institutions are becoming more involved in blockchain, as the research highlighted with the rise of tokenized assets including real estate, private credit, and government bonds.
Tokenized assets like as U.S. Treasuries, commodities, private credit, equities, real estate, and bonds issued by countries other than the United States are all part of the RWA market.
Further diversification of investment choices is being offered by the emergence of novel categories such as air rights, carbon credits, and fine art.
According to the research, investors are drawn to tokenized U.S. Treasuries because to the high interest rates in the country. These digital representations of government debt have a market value of over $2.2 billion.
Known Financial Organizations and the Concept of Tokenization
According to the research, well-established financial firms have played a significant role in driving the RWA market's expansion.
Notable financial organizations that have embraced tokenized assets include Franklin Templeton and BlackRock. The market leader in this space is BlackRock's Treasury product, which has a valuation of over $500 million.
Tokenization is becoming more popular among conventional financial institutions, and Franklin Templeton's FBOXX product is a leading example of this trend.
Financial institutions are increasingly gravitating toward new types of digital assets, as shown by the addition of tokenized stocks and digital funds to the portfolios of organizations like WisdomTree.
A historic rate-cutting cycle is about to begin in the United States, according to the research.
In a statement stating, "The concern around the legal landscape surrounding RWAs also remains," Binance Research warned of possible legislation.
