Tokenized Treasuries Hit Record Market Cap of $4.2 Billion as Crypto Market Correction Fuels Their Rise
Christian Sandor | Edited by Steven Alpher Updated 14 Mar 2025 19:45 UTC Published 13 Mar 2025 18:39 UTC
In recent weeks, as cryptocurrencies have suffered a significant market correction, digital asset investors have sought protection in tokenized US Treasury products.
The total market cap of treasury-backed tokens has increased by $800 million since the end of January, reaching a new all-time high of $4.2 billion on Wednesday, according to data from rwa.xyz.
Real asset platform Ondo Finance’s (ONDO) short-term bond-backed tokens OUSG and USDY have nearly reached $1 billion in total, up 53% from their market value in the past month. BUIDL, a partnership between BlackRock and tokenization firm Securitize, has surged 25% to over $800 million in the same period. Franklin Templeton’s BENJI token has risen 16% to $687 million, while USB Superstate has reached $363 million, up more than 63%.
A notable exception was Hashnote’s USYC, which lost more than 20% of its market cap to $900 million, largely due to the fall of DeFi protocol Usual after a backlash from investors. The token is the key backing asset of Usual’s USD0 stablecoin, whose supply has fallen below $1 billion from a peak of $1.8 billion in January.
“We believe the rise in tokenized Treasury market cap during the recent crypto downturn indicates a shift to quality, similar to traditional investors shifting from stocks to U.S. Treasuries amid economic uncertainty,” Brian Chow, head of research at rwa.xyz, told CoinDesk.
Chow based his analysis on a comparison of the growth in market capitalization of tokenized Treasury bonds and stablecoins between November and January, when crypto markets were rising, and February, when prices began to correct.
During the recent bear market, tokenized Treasuries have grown faster than stablecoins, unlike during the bull market,
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