According to data from the tokenized real asset analysis firm RWA.xyz, the total market value of tokenized U.S. Treasury bonds has surpassed $5 billion for the first time this week, reflecting the rapid growth in demand for real-world assets (RWA) on the blockchain.
Recently, on-chain treasury products grew by $1 billion in just two weeks, primarily driven by the tokenized fund BUIDL, co-issued by asset management giant BlackRock and digital asset firm Securitize.
Fidelity Investments is the latest large U.S. asset management company seeking to create a tokenized money market fund. Last week, they registered an “on-chain” stock class for the Fidelity U.S. Treasury Digital Fund (FYHXX), allowing the security to be recorded on the Ethereum blockchain, providing investors with transparency and verifiable transaction tracking.
Cynthia Lo Bessette, head of Fidelity’s digital asset management division, stated in a comment to CoinDesk that the company believes tokenization has the potential to transform the financial services industry by enhancing transaction efficiency and optimizing the allocation and use of capital in the market.
Tokenized treasury bonds allow investors to store idle funds on the blockchain to earn yields—similar to money market funds, they are also gradually being used as reserve assets in decentralized finance (DeFi) protocols. Another promising application scenario is as collateral for trading and asset management. Bessette added: data source
