Tokenized US Treasuries Set to Surpass $3 Billion by 2024: Analyst
The market for tokenized US Treasuries is poised for significant growth, with projections indicating it could surpass $3 billion by the end of 2024.
Tom Wan, a research strategist at 21.co, attributed the uprise to the rising adoption of tokenized financial products, he noted in a recent post on X.
Wan claimed that the primary driver behind this rapid growth is the diversification of holdings by decentralized autonomous organizations (DAOs) into tokenized US Treasuries.
For tokenized treasuries to reach this $3 billion target, the market would need to nearly double in size by year-end.
Major global players like Securitize and BlackRock are leading the charge, offering tokenized treasury products that are attracting substantial interest.
“With the two projects allocating to tokenized US treasury, we could be seeing the total market cap of tokenized US treasury increasing to $3B+ by the end of 2024.”
Currently, tokenized US government securities have accumulated over $1.6 billion in total assets under management (AUM), according to data from Dune Analytics.
A significant portion of this market is driven by BlackRock’s USD Institutional Digital Liquidity Fund, ticker symbol BUIDL, which has become the largest tokenized treasury fund, surpassing Franklin Templeton’s fund.
BUIDL achieved this status within six weeks, amassing over $375 million in market capitalization during that period.
The fund now holds over $528 million, representing a 28.8% market share.
Wan believes BlackRock’s fund will significantly boost inflows into tokenized treasuries.
“As the strategy laid out by Securitize and BlackRock, they intend to provide diversification for the crypto ecosystem to access risk-free US treasury yield without needing to leave the
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