According to RWAxyz data, the total value of tokenized US Treasury Bonds has surpassed $3 billion. This market had only exceeded $2 billion just 90 days prior. This increase is considered a result of Hashnote’s success with USYC. At the beginning of 2024, the total value of tokenized bonds was below $750 million, representing a 300% increase on an annual basis.
Tokenized Assets
The RWAxyz analytics platform indicates that 2024 has been a significant year for asset tokenization. The total market value of tokenized assets has seen a 32% increase. Notably, tokenized US Treasury Bonds have crossed the $3 billion mark in just 90 days, marking a substantial milestone.
“Hashnote’s USYC success contributed to the rapid growth of the tokenized bond market.” – RWAxyz
Various classes of tokenized assets, excluding stablecoins, are expanding rapidly. The adoption of evolving regulatory frameworks in regions like the US, Middle East, and Hong Kong has encouraged traditional financial institutions to experiment more in the field, boosting institutional interest. Recently, Chainlink 
$24 integrated with Coinbase‘s Project Diamond to provide interoperability for tokenized assets.
Performance of Tokenized US Treasury Bonds
Since the beginning of 2024, short-term US Treasury bonds have shown the best performance in tokenized markets. The market value across all products increased by 179%. These gains have been partially supported by high post-COVID interest rates. However, with the Federal Reserve expected to change its policy and lower interest rates, investors may reassess their portfolios. RWA analysts note that lower rates could present new opportunities for tokenized US Treasury Bonds.
In recent years, the primary focus of tokenized asset issuers has been to replicate traditional financial products in digital format. Once the necessary infrastructure is largely established, issuers can focus on the unique advantages that tokenization provides. These advantages include 24/7 liquidity, cross-collateralization for trading margins, and naturally composite and interoperable asset custody options.
New technological developments and regulatory clarity will play a crucial role in the adoption of tokenized assets and shaping market structure in the fourth quarter of 2024. These developments may also influence global perceptions of tokenization and establish new regulatory precedents.
