US Treasury yields rise, a review of popular projects tokenizing US Treasury collateralized debt obligations (CDOs).

Increase in US Treasury Yields Sparks Interest in Tokenized Collateralized Debt Obligations A Overview of Prominent Projects

Original: Web3Jade Twitter analysis of the tokenization of US Treasury bonds market

Author: Web3Jade | RealtyX DAO

Translation: RealtyX DAO Chinese

Currently, the tokenization of US Treasury bonds projects in the RWA field has attracted widespread attention. These projects have successfully integrated real-world value with the blockchain economy, leveraging low risk and stable returns, and have become a popular area of exploration for many projects.

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In the Web3 field, many projects and concepts often prioritize storytelling over substance, but the rise of real-world assets (RWA) promises to be a true model of innovation. This new trend not only goes beyond mere storytelling but also successfully connects projects with tangible real-world value, encompassing diverse markets such as real estate, commodities, bonds, and credit.

US Treasury bonds have always been widely regarded as one of the safest income-generating assets. Over the past year, with the continuous rise in federal fund rates, this has also boosted the yield of US Treasury investment products. At the same time, the application of RWA provides a chance for a broader user base to capture and amplify the value of real-world assets.

Through the application of RWA, the barriers to entry into the financial market are lowered, allowing more people to participate in the global financial system. This financial inclusivity enables a wider range of users to share the benefits brought by tangible assets, promoting a more equitable distribution of capital.

Surge in Tokenization of US Government Bonds

According to RWA data analysis platform RWA XYZ, since early 2023, the circulating value of United States Treasury securities has surged from $100 million to a staggering $777 million. What is the driving force behind this rapid growth, and which tokenized US Treasury bond projects in the Web3 space are worth paying attention to?

FOBXX: Tokenizing Government Money Market Funds

FOBXX is an on-chain money market fund launched by Franklin Templeton Investments in 2023. The fund invests at least 99.5% of its total assets in US government securities, cash, and repurchase agreements fully collateralized by US government securities or cash. The fund aims for high liquidity while maintaining shareholder capital and liquidity. Represented by BENJI tokens, each share is priced at $1.00. Therefore, FOBXX is a tokenized government money market fund, not a stablecoin.

Currently, the on-chain fund has reached a circulating value of over $300 million. Users can purchase through the Benji Investments App, with a subscription amount starting at $20. The fund may facilitate P2P transactions in the future.

OUSG Financial Tokenization Innovator

OUSG, launched by Ondo Finance, is another innovative project tokenizing US government bonds. The Total Locked Value (TVL) of OUSG tokens has reached $166.29 million. Despite requiring a minimum investment threshold of $100,000, its performance this year has been remarkable, as shown in the chart.

In order to allow more users to enjoy stable returns from tokenized US bonds, Ondo Finance recently introduced a lower threshold asset on the Mantle Network, namely USDY. This is a tokenized note supported by short-term US Treasury bills and bank current deposits.

The main highlights of OUSG include an Annual Percentage Yield (APY) of up to 5.10%, priced at $1.0155, but with a minimum purchase amount of only $500. Currently, the Total Locked Value (TVL) of OUSG tokens has reached $35 million.

USDV: Stablecoin in Tokenized Government Bonds

Unlike the previously mentioned projects, USDV launched by the Verified USD Foundation positions itself as a stablecoin. It is compatible with the ERC-20 standard and is pegged to the US dollar at a price of 1 USD. USDV achieves stability by tokenizing US Treasury bills (T-bills) and supports real-time reserve verification. Over time, the potential of USDV as an emerging stablecoin will gradually unfold.

Diverse Innovators in the RWA Field

In addition to FOBXX and OUSG, there are many innovators driving the development of tokenized government bonds. For example, projects such as BackedFi, Matrixdock, Maple Finance, and Prosper Ex, which are about to launch similar products, are actively exploring and expanding the possibilities in this field. The continuous efforts and innovations of these teams inject new vitality into the tokenized financial market, DeFi, and RWA.

Conclusion

In the evolving Web3 ecosystem, the emergence of RWA projects not only highlights their outstanding ability to bridge the digital and virtual world in terms of value but also provides real opportunities for cryptocurrency users. Please note that the views expressed in this article are not financial advice but rather a study on the vast potential of the RWA field.

At RealtyX DAO, we are committed to unlocking the unlimited potential of the RWA field. Currently, our main focus is on building practical applications in the tokenization of real estate and closely monitoring the dynamics of the entire RWA industry. We will continue to share our research results to promote new developments in the education and practical aspects of the RWA field.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!