Digital asset investors have been sheltered in tokenized US financial products as cryptocurrencies have been hit with massive market corrections over the past few weeks.
Since late January, the market capitalization of the Treasury-backed token increased by $800 million on Wednesday to secure a new record of $4.2 billion, RWA.xyz shows.
Real-world asset platform Ondo Finance (ONDO) products, short-term bond support Ousg and USDY tokens have risen to $1 billion shy, a surge in market value over the past month, a 53% rise. Buidl, a token jointly issued by Asset Manager BlackRock and Tokenization Firm Securitize, won 25% over the same period, exceeding $800 million. Asset Manager Franklin Templeton’s Benji token expanded to $687 million, up 16%, while Superstate’s USTB increased by more than 63%.
The notable outlier was Hashhnote’s USYC, which reduced more than 20% of its market capitalization to $900 million, primarily due to a decline in Defi Protocol after investor bounces. The tokens are the main support assets of the regular USD0 Stablecoin, plunging supply below $1 billion from its January peak of $1.8 billion.
“We believe that the tokenized Treasury market capitalization growth during the recent slump in crypto is a reflection of the flight to quality, similar to the way traditional investors move from stocks to the US Treasury during economic uncertainty,” Brian Cho, RWA.xyz’s research director, told Coindesk.
Choe analyzed the growth of tokenized Treasury market capitalizations and the growth of Stablecoins and Stablecoins market capitalizations from November to January when Crypto Markets recovered and February when prices were revised.
During the recent bearish period, the tokenized Treasury grew faster than Stubcoin, contrary to the bullish stage, when the stubcoin growth surpassed the Treasury token market.
Stablecoins grew quickly during crypto rallies from November to January, but tokenized Treasury growth has surpassed Stablecoins in the past few weeks. (rwa.xyz)
“This shows that rather than not having some investors left the ecosystem, they will turn capital into safer, more harvested assets until market conditions improve,” Cho said.
