What is the largest tokenized US treasury issuer?
Franklin Templeton is the largest tokenized US treasury issuer, accounting for 44.6% of the market share by the end of October, with a market capitalization of $210.8 million.
This was followed by relative newcomer Ondo Finance with a 25.3% share. Having launched in late 2021, Ondo Finance pivoted into Real World Assets (RWAs) in February 2023, and ended October with a mcap of $178.4 million.
Tokenized US treasury bills have surged in popularity in 2023, with the sector's market cap increasing from $113.9 million in January, to $704.4 million by the end of October. This represents a gain of 518.3% year-to-date.
Backed Finance is the Largest Gainer in Q3, adding $35.6 million
Backed Finance is the largest gainer in 2023 Q3, having added $35.6 million during the period. Its market share increased from 2.1% in 2023 Q2, to 6.8% in 2023 Q3. Backed Finance has launched support for multiple chains, including Ethereum, Gnosis Chain, Polygon, BNB Smart Chain, and Base.
This was followed by Ondo Finance, which grew by $34.4 million on the back of its newly launched US Dollar Yield Token (USDY) product in August. It is a tokenized note secured by short-term US Treasuries and bank demand deposits.
10 out of the 11 protocols offering tokenized US treasuries saw a quarterly increase in market cap of 21.5% or $124.4 million in absolute terms. Total market cap rose from $580 million in 2023 Q2 to $704.4 million in 2023 Q3. Open Eden was the only project that experienced a drop in market cap, falling from $12.9 million to $11.4 million, a drop of -12.0% or $1.6 million in absolute terms.
Franklin Templeton Grew $210 million YTD
Franklin Templeton is the largest gainer year-to-date in 2023, growing by 203.5% or $210.8 million. It is the first U.S. registered mutual fund to use a public blockchain to process transactions and record share ownership. First launched on the Stellar Network, it later expanded to the Polygon blockchain. However, despite gaining market cap, its market share fell from 51.3% to 44.6%, with the flood of newcomers to the market.
Newcomers to the tokenized treasuries space are quickly gaining traction. Of the 11 protocols tracked by RWA.xyz, eight were launched in 2023. Only Arca Labs, Franklin Templeton, and Wisdomtree debuted prior to 2023. While these three projects still account for the majority of market share at 53.8%, the newcomers have taken a significant chunk of the market. In particular, Ondo Finance, grew by $178.4 million in 2023 alone, making up 25.3% of the market.
What is the largest network for tokenized US treasuries?
Ethereum is the largest network for tokenized US treasuries, with 48.4% of the total market cap at $340.8 million issued on it in October 2023. Stellar follows closely behind with 45.9% of the total market cap with $323.0 million. It is the preferred issuance network for Franklin Templeton and Wisdomtree, the two accounting for $320.0 million of market cap.
Meanwhile, Polygon, and Solana have 3.4% and 2.4% of tokenized treasuries market cap as of October 2023. This makes up about $40.6 million in market cap.
Why are tokenized US treasuries increasing?
Investors in the crypto space are seeking these assets in order to capture higher returns as global interest rates soar, while yields in the crypto market plunge in the bear market.
Top Tokenized US Treasuries
Active protocols offering tokenized US treasuries, ranked by market cap in USD as of October 31, 2023, are as follows:
| Rank | Tokenized US Treasury Issuer | Market Cap (USD) |
| 1 | Franklin Templeton | $314,354,267.30 |
| 2 | Ondo Finance | $178,350,675.50 |
| 3 | Matrixdock | $90,417,048.74 |
| 4 | Backed Finance | $47,745,770.00 |
| 5 | Maple Finance | $37,456,669.14 |
| 6 | Open Eden | $11,388,823.97 |
| 7 | Wisdomtree | $10,729,269.01 |
| 8 | TrueFi | $8,500,000.00 |
| 9 | Mountain Protocol | $5,101,726.13 |
| 10 | Arca Labs | $381,409.58 |
| 11 | Swarm | $16,371.37 |
Methodology
The study examined the market cap of protocols offering tokenized US treasuries. The total value was measured in USD, and based on the latest available data from RWA.xyz as of October 31, 2023.
This study is for illustrative and informational purposes only, and is not financial advice. Always do your own research and be careful when putting your money into any crypto or financial asset.
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Shaun is a Research Analyst at CoinGecko, who has lived and breathed crypto since 2017. Previously a community manager for Synthetix and RedFOX, he dived down the crypto rabbit hole to grasp a better understanding of the industry. He now spends copious amounts of time on Crypto Twitter and Telegram, searching for the next idea for CoinGecko Research. Follow the author on Twitter @ShaunPaulLee
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