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Tokenized US Treasurys Market Grows to $845M in 2023: CoinGecko Report

CoinGecko's report reveals that tokenized US Treasurys grew to $845 million in 2023, driven by traditional finance companies. Ethereum dominates, but other networks like Stellar are gaining traction.

According to CoinGecko's 2024 report, the market capitalization of tokenized United States Treasurys surged from $114 million in January 2023 to $845 million by December, marking a substantial 641% growth within the year. This growth was largely driven by traditional finance companies embracing tokenization.

Significant Growth in Tokenized Securities

The report, titled "Rise of Real World Assets in Crypto," highlights the progress in tokenization of real-world assets (RWA). Tokenized securities are digital tokens backed by RWAs like stocks and bonds. For instance, the Ondo Short-Term US Government Bond Fund uses the OUSG token to represent ownership and yield.

Franklin Templeton emerges as the largest issuer of tokenized Treasurys, issuing $332 million worth of tokens with its On-Chain U.S. Government Money Fund, accounting for 38.6% of the market.

Ethereum Dominance and Other Networks

Most tokenized U.S. Treasurys are based on the Ethereum network, with 57.5% of the tokens on Ethereum. However, companies like Franklin Templeton and WisdomTree Prime have issued tokenized securities on Stellar, giving the network a 39% market share.

Slowdown in Growth

While 2023 saw explosive growth, the growth rate of tokenized treasuries slowed down in 2024, with only a 1.9% increase in January. As of February 1, the market capitalization of tokenized treasuries stood at $861 million.

Expansion Beyond Treasurys

Apart from tokenized treasuries, the report also highlights the rise of commodity-backed tokens, reaching a market capitalization of $1.1 billion. Tether Gold (XAUT) and PAX Gold (PAXG) hold 83% market capitalization for tokenized precious metals. Additionally, a new project has started tokenizing uranium, offering the redemption of the precious metal with digital tokens.

Overall, the growth and diversification of tokenized assets indicate a growing trend towards the tokenization of real-world assets, with the potential to revolutionize traditional finance.