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.
Real-World Assets: State of the Market
Binance Research (JieXuan Chua, CFA)
Jul 25th, 2023