- The Tokenized US treasury sector recorded a market cap increase of $704.4 million in October from $113.9 million in January; this rise represents a gain of 518.3% year-to-date.
- Franklin Templeton controls the tokenized US treasuries market despite the fall of shares from 51.3%
- Open Eden was the only treasury project to record a loss in its market cap from $12.9 million in 2022 to $11.4 million in 2023
Tokenization has become integral to the US real-world assets space. Naturally fueled by the buzz around digital assets and potential crypto yields, tokenization has taken over most of the digital financial landscape and certainly grabbed enough attention from investors.
Primarily, tokenization is the conversion of traditional assets into digital funds, which can be used, moved, or stored over blockchain networks. Today, most treasury projects have evolved into multiple asset management of hedge funds, crypto, NFTs, and EFTs, proving their relevance and efficiency in the current markets and allowing for the liquidation and ownership of more credit assets.
According to BanklessTimes.com, the largest tokenized US Treasury issuer in 2023, Franklin Templeton, closes the October chapter with over $210.8 million in market capitalization, controlling nearly 45% of tokenized market shares.
The site’s financial analyst, Alice Leetham, comments:
BanklessTimes finance analyst, Alice LeethamFranklin Templeton’s rise in market cap is a clear testament to the investors’ recognition of tokenized bills and their harbored potential. No doubt, tokenized issuance will be critical in predicting vital stats in Blockchain networks and the future of digital assets.
Overall Statistics of Tokenized US Treasuries in 2023
Franklin Templeton led the gainers’ list with growth close to about 204%. Following Franklin Templeton was Ondo Finance; although relatively new to the industry, the tokenized treasury controlled more than 25% of market shares by the end of October 2023. The institution came close to Franklin Templeton’s market cap, short only by about $33 million, with a market cap of $178.4 million.
Matrixdock, another strong newcomer, came in third on the list for top tokenized US treasuries with a market cap of $90.4 million. Since its launch in February this year, this treasury project has significantly increased RWA assets. Similarly, Backed Finance has shown tremendous progress, having the highest increases in Q3 ’23, earning about $35.6 million during the quarter, beating even Ondo at $34.4 million. The Q3’23 results boosted Backed Finance’s revenues to nearly $48 million, ranking it fourth.
Concluding the top 5 tokenized US treasuries list was Maple Finance, with a market cap of $37.5 million. This credit marketplace has set its eyes on conquering Asia, with a new $ 5 million deal in play to support its expansion goal. Ideally, the institution is built on Ethereum and Solana, among the largest extensive networks in tokenized bills. 2023 saw Ethereum dominate the market, with 48.4% of the total market cap issued in October 2023. Stellar came in second, with 45.9% of the total market cap at $323.0 million, while Polygon and Solana controlled 3.4% and 2.4% of tokenized treasuries market cap as of October 2023, respectively.
Why Did Franklin Templeton Have Such a Positive Financial Performance?
The rise in Templeton’s market cap is closely associated with investors’ growing interest in high-return options like hedge funds and credit assets since the recession began. The need to invest in more lucrative assets has turned the tide for most tokenized US treasuries, with Franklin Templeton no exception.
Moreover, Franklin Templeton’s move to change their distribution strategy worked incredibly. The change in distribution strategy led to a tremendous increase in long-term net flows from NFTs, ETFs, and more alternative funding, drawing investors in, with over $11 billion in net flows in this year alone.
Tokenized issuance is gaining significant traction. The newcomers to the industry and the rise in market cap for established treasuries like Templeton are only the beginning of a more successful tokenized sector in the United States.
