Explosive Growth: US Treasury Tokenization Skyrockets to $845M in 2023, Reveals CoinGecko Report!

CoinGecko's latest report titled "Rise of Real World Assets in Crypto" reveals a remarkable surge in tokenized treasuries within the United States financial landscape. Traditional finance entities embracing blockchain technology fueled a staggering 641% growth in 2023, as per data from the digital asset tracker.

In the report released on March 21, CoinGecko detailed the exponential rise of tokenized treasuries, which soared from $114 million in January 2023 to an impressive $845 million by year-end. This surge underscores the increasing adoption of blockchain-based digital tokens representing U.S. Treasury securities.

Tokenized securities, such as those backed by real-world assets like stocks and bonds, have gained traction. For instance, the Ondo Short-Term US Government Bond Fund utilizes the OUSG token to signify ownership of fund shares and its corresponding yield.

Companies issuing tokenized U.S. treasuries. Source:CoinGecko

Franklin Templeton Leads Tokenized Treasuries Market with $332 Million Issuance; Eyes Ethereum ETF Launch

Franklin Templeton emerges as a prominent player in the tokenized treasuries arena, holding the title of the largest issuer. With its On-Chain U.S. Government Money Fund, the company has issued tokens worth $332 million, commanding a substantial 38.6% of the market. Franklin Templeton, renowned for its innovative financial products, notably launched a spot Bitcoin ETF in January and is pursuing the launch of an Ethereum ETF, as evidenced by its application to the U.S. Securities and Exchange Commission (SEC).

Rise of Yield-Bearing Stablecoins: Mountain Protocol's USDM Tokens Skyrocket, Ethereum Dominates but Stellar Gains Traction

Aside from Franklin Templeton, protocols featuring yield-bearing stablecoins backed by U.S. treasury bills are gaining momentum. Notably, Mountain Protocol's USDM tokens surged from $26,000 to $154 million since their introduction in September 2023.

While tokenized U.S. treasuries predominantly operate on the Ethereum network, alternative platforms like Stellar are also witnessing activity. CoinGecko's report reveals that Ethereum hosts 57.5% of these tokens, with Stellar securing 39% of the market share through offerings by companies like Franklin Templeton and WisdomTree Prime.

Despite the explosive growth witnessed in 2023, the pace slowed in 2024, with tokenized treasuries experiencing a modest 1.9% growth in January. As of February 1, their market capitalization stood at $861 million.

Market capitalization of commodity-backed tokens. Source:CoinGecko

Exploring the $1.1 Billion Market of Commodity-Backed Tokens: Tether Gold and PAX Gold Lead, Uranium Tokenization Emerges

In addition to tokenized treasuries, CoinGecko highlights the burgeoning market for commodity-backed tokens, which have reached a market capitalization of $1.1 billion. Notably, Tether Gold (XAUT) and PAX Gold (PAXG) dominate 83% of the market for tokenized precious metals.

An intriguing development in the crypto space involves the tokenization of uranium, enabling the redemption of this precious metal through digital tokens, underscoring the expanding scope of blockchain-based asset representation.