Tokenized U.S. Treasurys Reach $1 Billion; SEC Delays Bitcoin ETF Decision
Summary:
Tokenized U.S. Treasury securities on public blockchains have exceeded $1 billion, driven by traditional financial institutions increasing their adoption of on-chain securities amidst high interest rates. With the largest chunk of these assets hosted on Ethereum, Polygon, and Stellar networks, firms like Franklin Templeton are contributing significantly to this trend. However, the U.S. SEC has delayed its decision on options trading on spot Bitcoin ETFs. Meanwhile, Paradigm has led a $225 million investment into a new network, Monad Labs, which aims to rival market leaders like Solana by offering faster and cheaper transactions than Ethereum.
Tokenized United States Treasury securities on public blockchains have crossed the $1 billion threshold. The increase was due to traditional financial institutions increasingly adopting on-chain securities amidst an extended period of high interest rates. Data assembled by 21.co and Dune Analytics reveals that as of March 28, the total value of tokenized government securities exceeded $1 billion, spread across 17 products. The Ethereum, Polygon and Stellar networks are housing the lion's share of these assets. Paul Wong, Stellar Foundation's Director of Product, CBDCs and Institutions, asserts that more and more asset issuers are endorsing blockchain technology as a beneficial business tool. One such company that is tokenizing assets is investment firm Franklin Templeton, with an impressive $360.1 million in assets and a 33.6% market share via its Franklin OnChain U.S. Government Money Fund. Launched in 2021, this fund operates on the Polygon and Stellar Blockchains, and forms the largest asset group on the Stellar network in terms of volume, boasting over $430 million in market value by late March. Further, Wong predicts a surge in tokenization over the forthcoming years. In other news, the U.S. Securities and Exchange Commission (SEC) has postponed its decision on authorizing options trading on spot Bitcoin ETFs for Bitwise and Grayscale Bitcoin Trust on the New York Stock Exchange (NYSE). A similar delay occurred for Nasdaq last month, which was looking to offer options trading on BlackRock’s iShares Bitcoin Trust. The SEC's next decision deadline for the NYSE modification is May 29. Finally, Paradigm, a crypto-focused venture capital firm, has led a $225 million investment into a new network that aims to rival market leaders like Solana. Monad Labs is striving to create a brand-new smart contract network that promises faster and lower-priced transactions than Ethereum, facilitating as many as 10,000 transactions per second, with complete compatibility with the Ethereum Virtual Machine. This positive breakthrough followed a two-year downturn in Crypto VC funding, which saw an uptick in the first quarter of 2024.
Published At
4/13/2024 12:00:00 AM
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