Tokenized U.S. Treasurys Surpass $600M as Crypto Investors Capture TradFi Yield
Crypto investors now effectively lend $614 million to the U.S. government via different tokenized Treasury products, according to real-world asset data firm RWA.xyz.
The market value of blockchain-based investment products that wrap U.S. Treasury bills, bonds and money market funds into a form of a token total $614 million, according to real-world asset data firm ’s .
for tokenized Treasurys among digital asset investors has been steadily growing as the yield on U.S. government bonds, widely considered as a risk-free interest rate, surpassed yields in decentralized finance ().
DeFi yields plummeted as demand for borrowing and leverage collapsed during the crypto market downturn. Meanwhile, bond yields in traditional finance (TradFi) rose significantly as the Federal Reserve Bank jacked up interest rates to the highest level since to combat rampant inflation.
This year, a slew of new entrants such as OpenEden, Ondo Finance and Maple Finance released blockchain-based Treasury products targeting sophisticated investors, digital asset firms and decentralized autonomous organizations.
“The entire macroeconomic backdrop has shifted,” Jack Chong, guest researcher at , noted in a . “This naturally attracts investors to shift their exposure from crypto assets into US Treasuries.”
of real-world assets has become one of crypto’s hottest trends and could reach $5 trillion market value over the next five years, wealth management firm Bernstein in a research last month.
Edited by James Rubin.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
What will the Fed’s rate cut mean for the global economy?
Share link:In this post: The Fed is set to cut interest rates for the first time since COVID, which will shake global markets, currencies, and commodities. A stronger dollar has crushed weaker currencies like the Japanese yen and Turkish lira, while central banks scramble to control inflation. Ray Dalio warns that the Fed’s decision could worsen the US debt problem and spark more political chaos ahead of the election.
With $SHIB and $DOGE Leading, Is $PEPE Set to Join the Rally?
Crypto investment and entrepreneurship: How to identify the base color of RWA projects?
VIPBitget VIP Weekly Research Insights
Liquid staking emerged after Ethereum transitioned from a proof-of-work to a proof-of-stake mechanism. Its primary goal is to enhance asset utility by allowing users to earn staking rewards while maintaining the liquidity of their staked positions. Currently, mainstream liquid staking protocols allow users to stake their assets in exchange for liquid staking tokens (LSTs). For instance, by staking ETH on platforms such as Lido, users receive stETH tokens. This approach is commonly referred to as "liquid staking derivatives" (LSDs). Since Binance hinted at collaborating with Sanctum to launch the Solana liquid staking token BNSOL, Sanctum's governance token CLOUD has gained significant attention, rising despite unfavorable market trends. On September 5, Bybit announced its partnership with Solayer to launch bbSOL. Additionally, major exchanges have unveiled plans to introduce Solana LST tokens. EigenLayer also began its second season of airdrop claims this week, with its governance token EIGEN potentially circulating by the end of September. The LSD and restaking sectors are gaining quiet momentum, potentially setting the stage for a new wave of hype around restaking within the SOL ecosystem.
Trending news
MoreCrypto prices
More
