The idea behind stable coins that pay yields might not be leading in popularity, but they’ve reached enough of a market size for major investors to notice. Among the agencies making a name in the field of treasury-backed crypto tokens are:
- WisdomTree Prime
- Mountain Protocol
- Benjamin Templeton
What’s the Big Fuss Behind Tokenized Treasuries?
U.S. Treasury tokens are financial assets in the form of crypto but that represent a 1:1 investment in treasuries or bonds. To make tokenized treasuries work, the issuer of the crypto has to have an actual fund of treasury notes to support the tokens they’re promoting. This is exactly what one major investment agency is doing, which is pushing this market higher.
$845 Million and Counting …
In 2023 alone, the treasury-token market grew from a mere $114 million in value to over three-quarters of a billion in USD. More growth is expected, and the surmounting 641% growth it already experienced is just a drop in the bucket.
The tokenized treasury industry is now worth over $800 million USD.
Why Some Are Calling Them “Real-Word Assets”
The market for RWAs, which are real-world assets, is giving rise to an investment phenomenon. The bulk of “RWAs” are backed by bonds, gold, stocks or other commodities. Coins backed by commodities, like gold, however, are referred to as commodity tokens. Commodity tokens hit a market value of $1.1 billion, and leading in that arena are:
- Tether Gold (XAUT)
- PAX Gold (PAXG)
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How Investment Firms Take a Hold of Treasury Tokens
Our example begins with $332 million in treasury tokens. Benjamin Templeton leads the world in offering a solution that might make it among the wealthiest institutions invested in crypto.
The firm’s “On-Chain U.S. Government Money Fund” already took hold of 38.6 percent of the market. Benjamin Templeton is among the 10 ETF providers of spot Bitcoin. As the same investment team anticipates the coming of Ether ETFs, they’ve already registered, requesting permission to offer Ether ETFs if they’re legalized.
What Analysts Foresee
2023 was a big year for treasury tokens, but this year has yet to unveil any advances as of late. The promises, however, are palpable as the world shifts, as Bitcoin’s price rises, and as retail traders are asking about the crypto investments made by leading institutions.
The steady 1.6% growth that tokenized treasuries experienced in 2024, however, is dust compared to its past potential. Investors are watching closely, and so should you. If you’re ready for a leap into blockchain or crypto, then find your legal access through Gemini.
