As meme coins drive much of the trading activity at one end of the cryptocurrency market, protocols with arguably more legitimate use cases are quietly growing in value.
BlackRock’s tokenized fund assets under management increased to $375 million.
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Posted on May 1, 2024 at 4:04 AM EST.
A new wave of adoption in the form of real world asset (RWA) tokenization is likely to drive the next phase of the cryptocurrency market as protocols serving this section of the industry gain momentum.
data from Messari shows that the RWA protocol’s Total Value Locked (TVL) has surged 60% since February, with the blockchain analytics firm attributing this to the market’s preference for debt-based, high-yield investments. .
Over the past year, RWA protocols have seen a remarkable resurgence, with TVL soaring to nearly $8 billion due to market preference for high-yield bond-based investments.
✍️ @SteimitzKinji The latest Messari Pro report provides insights: https://t.co/GeDgqu3hkW pic.twitter.com/zKgyXcRoMU
— Messari (@MessariCrypto) April 30, 2024
These investments do not include fiat-backed stablecoins, but include assets such as commodities, securities, and real estate tokenization protocols.
Messerli’s estimates likely include a broader base of protocols involved in RWA tokenization. dephilumThe TVL of the RWA protocol is estimated at $6.09 billion. However, this number has increased by 700% since early February.
With institutional investors like BlackRock and Franklin Templeton moving into the space, it's easy to see why this space is gaining momentum. BlackRock's tokenized asset fund, BlackRock USD Institutional Digital Liquidity Fund (BUIDL), has become the largest fund of its kind in just six weeks. attract Last week saw an inflow worth $70 million, with assets placed under administration at $375 million.
Meanwhile, Franklin Templeton's on-chain US government money fund (FOBXX), represented by the BENJI token, managed $368 million in assets.
1/ BlackRock’s BUIDL surpasses Franklin Templeton’s BENJI (FOBXX) in assets under management to become the largest on-chain money market fund
– BUIDL grew 36.5% month over month from $274 million to $375 million
– BENJI grew only 2.1% month over month, from $360 million to $368 million pic.twitter.com/zcMzThfAAh— Tomwan (@tomwanhh) April 30, 2024
Both funds are tokenized money market funds, but BUIDL is backed by U.S. Treasury bills, repurchase agreements, and cash, while BENJI offers FOBXX shares that can be minted on the Stellar and Polygon blockchains. I represent.
Tom Wan of 21.co predicts that the dominance of tokenized government securities will increase from 1% today to more than 10% in the next few years.
In his view, a key issue with tokenization is bootstrapping demand and liquidity, and stablecoin issuers could fill this gap.
