Tokenized Treasury Market Reaches $4.2 Billion Amid Crypto Correction
Amid a market correction, digital asset investors are increasingly turning to tokenized U.S. Treasury products.
- The market capitalization of Treasury-backed tokens increased by $800 million to reach $4.2 billion.
- Ondo Finance's OUSG and USDY tokens approached $1 billion, marking a 53% rise in one month.
- BUIDL token from BlackRock and Securitize grew 25% to over $800 million.
- Franklin Templeton's BENJI token rose 16% to $687 million.
- Superstate's USTB surged more than 63% to $363 million.
- In contrast, Hashnote's USYC dropped over 20% to $900 million due to issues with the Usual protocol, impacting its backing stablecoin supply.
Brian Choe from rwa.xyz noted that the growth in tokenized treasuries during this downturn mirrors traditional shifts from equities to U.S. Treasuries in uncertain times. He highlighted that during bearish conditions, tokenized treasuries outpaced stablecoins in market cap growth, compared to the previous bullish phase.
Choe concluded that this trend indicates a rotation of capital into safer, yield-bearing assets rather than exiting the crypto ecosystem.