• Tom Wan predicts a $3B market cap target for tokenized U.S. Treasury in 2024.

  • DeFi projects’ DAOs are diversifying to real-world assets (RWAs).

  • Securitize and BlackRock are working to provide access to risk-free treasury yield.

The market for tokenized U.S. Treasuries could surpass $3 billion by the end of 2024, according to Tom Wan, a data and research strategist at Dune Analytics. Wan’s prediction comes as DAOs within the DeFi space increasingly diversify their holdings into real-world assets.

$3B Tokenized US Treasuries by the end of 2024?We are seeing a trend of DeFi Project's DAO diversifying their treasury to RWAs, including stablecoins and Tokenized US Treasuries.With the maturity of tokenized US treasuries, over 15+ products on EVM Chains, and close to $2B… pic.twitter.com/rzRNvUNYWJ

— Tom Wan (@tomwanhh) July 15, 2024

In his post, Wan noted that DeFi projects’ DAOs are diversifying into Real-World Assets (RWAs), including stablecoins and tokenized U.S. Treasuries. The research strategist highlighted that with tokenized U.S. Treasuries, which encompass over 15 products on Ethereum Virtual Machine (EVM) chains and manage close to $2 billion in assets, DAOs will likely include yield-bearing products in their treasuries.

Notably, Wan cited BUIDL, USTB, USDY, and USDM as some products DAOs have already added to their treasuries, predicting that the trend will likely continue. He highlighted other examples, including Arbitrum allocating 35 million ARB, equivalent to $27 million, and MakerDAO allocating $1 billion.

Meanwhile, the Dune data analyst cited the strategies laid out by leading investment management platforms Securitize and BlackRock, noting that the firms intend to provide diversification for the crypto ecosystem by enabling it to access risk-free U.S. Treasury yield without needing to leave the blockchain ecosystem.

According to Wan, the projected spike in the tokenized U.S. Treasury market cap will result from the actions of these firms, paving the way for further activities by other players in the sector.

For context, recent research by Dune Analytics shows stablecoin yields are no longer as attractive as Government Treasuries from a risk and return perspective. Therefore, projects like Ondo Finance, Backed Finance, Matrixdock, Maple Finance, and Swarm, among others, have tokenized U.S. Treasuries on-chain and have successfully attracted over $300 million in assets under management.

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