- The tokenization of real-world assets (“RWAs”) has continued to gain traction with increasing user adoption and the entrance of large institutional players.
- Coupled with relatively low decentralized finance (“DeFi”) yields, rising interest rates have contributed to an uptake in RWAs, specifically in tokenized treasuries.
- Investors are effectively lending over US$600M to the U.S. government today via the tokenized treasury market and receiving around a 4.2% annualized yield in return.
- Tokenized assets are estimated to be a US$16 trillion market by 2030, representing significant headroom for growth and a notable increase from US$310B in 2022.
- Numerous protocols have integrated RWAs or are participating in their growth. We briefly cover MakerDAO, Maple Finance, and Ondo Finance in this report.