As cryptocurrencies have been battered in a broad-market correction over the previous weeks, digital asset buyers sought refuge in tokenized U.S. Treasury merchandise.
Since late January, the mixed market capitalization of Treasury-backed tokens grew $800 million to hit a recent all-time report of $4.2 billion on Wednesday, knowledge supply rwa.xyz reveals.
Actual-world asset platform Ondo Finance’s (ONDO) merchandise, the short-term bond-backed OUSG and USDY tokens, climbed to simply shy of $1 billion mixed, a 53% surge in market worth over the previous month. BUIDL, the token issued collectively by asset supervisor BlackRock and tokenization agency Securitize, gained 25% throughout the identical interval to surpass $800 million. Asset supervisor Franklin Templeton’s BENJI token expanded to $687 million, a 16% improve, whereas Superstate’s USTB hit $363 million, up greater than 63%.
A notable outlier was Hashnote’s USYC, shedding over 20% of its market cap to $900 million, predominantly attributable to DeFi protocol Typical’s decline after investor backlash. The token is the principle backing asset of Typical’s USD0 stablecoin, which plummeted under $1 billion provide from its January peak of $1.8 billion.
“We consider the expansion of the tokenized treasury market cap in the course of the current crypto downturn displays a flight to high quality, much like how conventional buyers shift from equities to U.S. Treasuries throughout financial uncertainty,” Brian Choe, head of analysis at rwa.xyz, advised CoinDesk.
Choe primarily based his evaluation on evaluating the market cap development of tokenized treasuries with stablecoins between November and January, when crypto markets rallied, and from February when costs corrected.
Through the current bearish interval, tokenized treasuries grew sooner than stablecoins, opposite to the bullish part, when stablecoin development outpaced the treasury token market.
Stablecoins grew sooner in the course of the crypto rally from November to January, whereas tokenized treasuries’ development outpaced stablecoins over the previous few weeks. (rwa.xyz)
“This indicators some buyers aren’t exiting the ecosystem however relatively rotating capital into safer, yield-bearing belongings till market situations enhance,” Choe mentioned.
