Original Author: RealtyX DAO English Channel ｜Web3Jade

Compiled by: RealtyX DAO Chinese

Introduction

In the Web3 space, many projects and concepts often focus more on narrative than substance, while the rise of Real World Assets (RWA) is expected to become a true model of innovation. This new trend not only transcends mere storytelling but also successfully connects projects with tangible real-world value, covering diverse markets such as real estate, commodities, bonds, and credit.

Currently, the RWA sector is gaining widespread attention for tokenization projects related to U.S. Treasury bonds. These projects successfully integrate real-world value with the blockchain economy through their low-risk and stable return characteristics, making them a popular area of exploration for many projects.

U.S. Treasury bonds have long been widely regarded as one of the safest yield-bearing assets. Over the past year, the continuous rise in federal funds rates has also boosted the yields of U.S. Treasury investment products. Meanwhile, the application of RWA provides a broader user base with opportunities to capture and amplify the value of real-world assets.

Through the application of RWA, the barriers to entry in financial markets are lowered, allowing more people to participate in the global financial system. This inclusive nature of finance enables a wider range of users to share in the benefits brought by actual assets, promoting a more balanced distribution of capital.

Surge in Tokenization of U.S. Government Bonds

According to the RWA data analysis platform RWA XYZ, since the beginning of 2023, the circulating value of U.S. Treasury securities has surged from $100 million to an impressive $777 million. What is driving this rapid growth? What tokenization projects related to U.S. Treasury bonds are worth paying attention to in Web3?

FOBXX: Tokenized Government Money Market Fund

FOBXX is an on-chain money market fund launched by Franklin Templeton in 2023. The fund invests at least 99.5% of its total assets in U.S. government securities, cash, and repurchase agreements fully collateralized by U.S. government securities or cash. The fund aims to seek high liquidity while maintaining shareholder capital and liquidity. Represented by the BENJI token, each share is priced at $1.00. Therefore, FOBXX is a tokenized government money fund rather than a stablecoin.

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

OUSG Innovator in Treasury Tokenization

Launched by Ondo Finance, OUSG is another innovative project for tokenizing U.S. government bonds. The total locked value (TVL) of OUSG tokens has reached $166.29 million. Although it requires a minimum investment threshold of $100,000, its performance this year has been remarkable, as shown in the chart.

To allow more users to enjoy stable yield tokenized U.S. Treasury products, Ondo Finance recently launched a lower-threshold asset on the Mantle Network, called USDY. This is a tokenized note backed by short-term U.S. Treasury bonds and bank demand deposits.

Key highlights of OUSG include an annual percentage yield (APY) of up to 5.10%, priced at $1.0155, 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 U.S. dollar at a price of 1 USD. USDV achieves stability through the tokenization of U.S. Treasury bills (T-bills) while supporting real-time reserve verification. Over time, the potential of USDV as an emerging stablecoin will gradually be revealed.

Diverse Innovators in the RWA Space

In addition to focusing on FOBXX and OUSG, many innovators are driving the development of the tokenized government bond sector. Projects such as BackedFi, Matrixdock, Maple Finance, and Prosper Ex, which is set 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 ongoing evolution of the Web3 space, the emergence of RWA projects not only highlights their outstanding ability to bridge the value between the digital and virtual worlds but also provides tangible opportunities for cryptocurrency users. Note that the views expressed in this article are not financial advice but merely a study of the vast potential of the RWA field.

At RealtyX DAO, we are committed to unlocking the infinite potential of the RWA sector. Currently, we are primarily focused on building practical applications in the real estate tokenization field and closely monitoring the dynamics of the entire RWA industry. We will continue to share research findings to jointly promote new developments in the RWA field in terms of education and practice.

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