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A trillion-dollar dream: why experts predict 1000x increase for tokenized treasuries

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Tokenized treasures have grown by over 700% in one year. Learn how these digital assets are reshaping the investment scenes.

The concept of digitizing traditional financial assets like government or corporate bonds for trading on blockchain platforms has transitioned from theory to practice.

As of February, tokenized treasuries have emerged as a new avenue for crypto investors, with the market witnessing a growth of over 700%, reaching $860 million, up from $100 million at the start of 2023.

Treasury product market caps | Source: RWA.xyz

The surge in interest isn’t just from individual enthusiasts; institutional investors are also getting on board, recognizing the potential for higher yields and more diversified portfolios.

Global X, a giant in the world of exchange-traded funds (ETFs) managing over $42 billion in assets, predicts, based on the RWA.xyz data, that the market for tokenized bonds, which is currently under $1 billion, could explode to around $1 trillion by 2030, marking over a 1000x increase from current levels.

What are tokenized treasuries, and how do they work?

In essence, tokenized treasuries are a subset of tokenized securities, focusing solely on government debt instruments. What are tokenized securities? They are digital representations of traditional financial assets traded on blockchain networks using digital tokens. These tokens, essentially digital certificates, symbolize ownership or value of the underlying asset. Examples of tokenized securities include company stocks, government or corporate bonds, and even real estate properties.

In simple terms, imagine owning shares of a company, but instea

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Author: Ankish Jain

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