Crypto’s Comedic Crisis: Tokenized Treasuries Soar While Coins Crash! 😂💰

What to know:

  • In the grand theater of market corrections, our digital asset investors have taken a dramatic turn towards tokenized U.S. Treasury products, catapulting their market cap to a staggering $4.2 billion! 🎭💸
  • Since the curtain rose in late January, this asset class has added a whopping $800 million in market value, with Ondo Finance’s tokens, BlackRock’s BUIDL, Franklin Templeton’s BENJI, and Superstate’s USTB all basking in the limelight. Meanwhile, Hashnote’s USYC has taken a rather unfortunate tumble. đŸ˜Ŧ
  • As tokenized treasuries outshine stablecoins during this crypto calamity, it seems investors are making a “flight to quality,” seeking refuge in safer, yield-bearing assets, as noted by the ever-astute Brian Choe from rwa.xyz. 🛩ī¸đŸ’ŧ

As cryptocurrencies have been mercilessly battered in this broad-market correction, our digital asset investors have sought solace in the warm embrace of tokenized U.S. Treasury products. Who could blame them? 😅

Since late January, the combined market capitalization of Treasury-backed tokens has surged by $800 million, reaching a fresh all-time record of $4.2 billion on Wednesday, according to the ever-reliable rwa.xyz. 📈

Real-world asset platform Ondo Finance’s (ONDO) products, the short-term bond-backed OUSG and USDY tokens, have climbed to just shy of $1 billion combined, marking a 53% surge in market value over the past month. BUIDL, the token born from the union of asset manager BlackRock and tokenization firm Securitize, has gained a respectable 25% during the same period, surpassing $800 million. Meanwhile, Franklin Templeton’s BENJI token has expanded to $687 million, a 16% increase, while Superstate’s USTB has hit $363 million, up more than 63%. Quite the performance! 🎉

However, not all is rosy in this digital garden. Hashnote’s USYC has shed over 20% of its market cap, plummeting to $900 million, largely due to the DeFi protocol Usual’s unfortunate decline after a rather vocal investor backlash. The token is the main backing asset of Usual’s USD0 stablecoin, which has seen its supply drop below $1 billion from a January peak of $1.8 billion. Ouch! 😱

“We believe the growth of the tokenized treasury market cap during the recent crypto downturn reflects a flight to quality, much like how traditional investors flee from equities to U.S. Treasuries during economic uncertainty,” Brian Choe, the sage of rwa.xyz, told CoinDesk. Wise words indeed! 🧐

Choe’s analysis compares the market cap growth of tokenized treasuries with stablecoins between November and January, when crypto markets were on a high, and from February when prices took a nosedive. 📉

During this recent bearish period, tokenized treasuries have outpaced stablecoins, a stark contrast to the bullish phase when stablecoin growth was the star of the show. 🌟

“This signals that some investors aren’t exiting the ecosystem but rather rotating capital into safer, yield-bearing assets until market conditions improve,” Choe sagely concluded. A prudent strategy, indeed! 🧠💡

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2025-03-13 21:54