Overview
Amid a broad-market correction, digital asset investors have turned to tokenized U.S. Treasury products, pushing their combined market capitalization to a record $4.2 billion.
Key Points
- The asset class added $800 million in market value since late January, with notable increases from Ondo Finance, BlackRock, Franklin Templeton, and Superstate. However, Hashnote’s USYC has seen a decline.
- This growth reflects a “flight to quality” as investors gravitate towards safer assets during market downturns, as explained by Brian Choe, head of research at rwa.xyz.
Market Trends
Since late January, the market cap of Treasury-backed tokens increased by $800 million to reach $4.2 billion. This trend signifies that investors are not abandoning the crypto market but instead are reallocating their investments into safer, yield-bearing assets as market conditions remain uncertain.
Brian Choe states, “We believe the growth of the tokenized treasury market cap during the recent crypto downturn reflects a flight to quality, similar to how traditional investors shift from equities to U.S. Treasuries during economic uncertainty.”
Conclusion
While cryptocurrencies face pressure, tokenized treasuries appear to be a resilient investment, outperforming stablecoins during this bearish phase.
