U.S. Treasury yields rose, and this article takes stock of the popular projects of tokenized U.S. Treasury RWA

Original: Web3Jade Twitter analyzes the U.S. Treasury tokenization market

Author: Web3Jade |RealtyX DAO

Compilation: RealtyX DAO Chinese

At present, the U.S. debt tokenization project has attracted widespread attention in the RWA field. These projects have successfully integrated real-world value with the blockchain economy through the characteristics of low risk and stable returns, and have become a popular area for many projects to explore.

In the Web3 space, many projects and concepts are often more narrative than substantive, and the rise of real-world assets (RWAs) promises to be a model for true innovation. This new trend goes beyond mere narratives and succeeds in connecting projects to real-world value across multiple markets such as real estate, commodities, bonds, and credit.

U.S. Treasuries have long been widely regarded as one of the safest yielding assets. Over the past year, as the federal funds rate has continued to rise, this has also boosted yields on Treasury investment products. At the same time, RWA applications provide an opportunity for a broader user base to capture and amplify the value of real-world assets.

Through the application of RWA, the barrier to entry in the financial market is lowered, and more people can participate in the global financial system. This nature of financial inclusion allows a wider range of users to share in the benefits of real assets, leading to a more balanced distribution of capital.

Surge in U.S. Government Bond Tokenization

Since the beginning of 2023, the outstanding value of United States Treasury securities has surged from $100 million to a staggering $777 million, according to RWA XYZ, a RWA data analytics platform. What is the driving force behind this rapid growth, and what are the U.S. debt tokenization projects worth paying attention to in Web3?

FOBXX: Tokenized Government Money Fund

FOBXX is a money market on-chain fund launched in 2023 by Franklin Templeton Investments. The Fund invests at least 99.5% of its total assets in U.S. government securities, cash and repurchase agreements fully secured by U.S. government securities or cash. The Fund’s objective is to seek high liquidity while maintaining shareholder capital and liquidity. Represented by BENJI tokens, each share is priced at $1.00. As a result, FOBXX is a tokenized government money fund, not a stablecoin.

Currently, the on-chain fund has reached more than $300 million in circulating value. Users can purchase through the Benji Investments App, and the subscription amount starts at $20. The fund may enable P2P trading in the future.

OUSG Fiscal Tokenization Innovator

Launched by Ondo Finance, OUSG is another innovative project in tokenizing U.S. government bonds. The total value locked (TVL) of the OUSG token has reached $166.29 million. Despite the need for a minimum investment threshold of $100,000, it can be seen from the chart that it has performed impressively this year.

In order to allow more users to enjoy tokenized U.S. bond products with stable income, Ondo Finance has also recently launched a lower barrier-to-door asset, USDY, on the Mantle Network. This is a tokenized note backed by short-term U.S. Treasuries and bank demand deposits.

Key highlights of OUSG include an APY of 5.10% at $1.0155 with a minimum purchase of $500. Currently, the total value locked (TVL) of OUSG tokens has reached $35 million.

USDV: Stablecoin in Tokenized Government Bonds

Unlike the previously mentioned projects, USDV launched by the Verified USD Foundation positions itself as a stablecoin. It is ERC-20 compliant and pegged to the US dollar at a price of 1 USD. USDV achieves stability by tokenizing U.S. Treasury bills (T-bills) while supporting real-time reserve verification. Over time, USDV’s potential as an emerging stablecoin will be revealed.

Diverse Innovators in the RWA Space

In addition to focusing on FOBXX and OUSG, there are a number of innovators who are driving the development of the tokenized government bond space. For example, projects such as BackedFi, Matrixdock, Maple Finance, and Prosper Ex, which is about to launch a similar product, are actively exploring and expanding the possibilities in this space. The continuous efforts and innovations of these teams have breathed new life into the tokenized financial markets, DeFi, and RWA.

Conclusion

In the continuous evolution of the Web3 field, the emergence of RWA projects not only highlights its outstanding ability to bridge the value of the digital and virtual worlds, but also provides real opportunities for digital currency users. Please note that the views expressed in this article are not financial advice and are merely a study of the broad potential of the RWA field.

At RealtyX DAO, we are committed to unlocking the unlimited potential of the RWA space. At present, we focus on building practical applications in the field of property tokenization and keep a close eye on the dynamics of the entire RWA industry. We will continue to share the results of our research to jointly promote new developments in the field of RWA at the educational and practical levels.