The Depository Trust & Clearing Corporation unveiled plans on Wednesday to issue tokenized securities on Canton Network, the privacy-enabled blockchain built for financial institutions. The infrastructure company, which processed $3.7 quadrillion in transactions last year, said the process will initially involve the creation of tokens representing U.S. Treasuries. The move marks DTCC’s first step in a years-long roadmap, according to a press release. The securities will be held by DTCC for safekeeping, und ...

Another key driver is the rise o f tokenized U.S. Treasuries , whose supply exceeded $3 billion this year, a 10x increase in about two years, showing “significant institutional appetite for yield-backed digital dollars.”“Institutions and fintech platforms are integrating stablecoins as payment and settlement tools. Circle processed more than $12 trillion on-chain transaction volume in 2023, demonstrating how quickly stablecoins are becoming mainstream financial infrastructure.”“Institutions will demand stab ...

Core Insights - The on-chain tokenized Treasuries market has expanded from approximately $5 million at the beginning of the year to nearly $170 million by mid-October, marking a 34X increase and demonstrating institutional viability [1][5][11] - The total value of real-world assets on the network has reached about $365 million, indicating a growing base of holders and increasing transfer volumes [1][6] - The liquidity of tokenized U.S. Treasuries on the XRPL has evolved into a significant asset pool, attracting financial institutions that require substantial tokenized assets for their operations [2][3] Market Dynamics - U.S. Treasury bills and bonds are highly liquid and favored by both large financial institutions and retail investors due to their safety and yield potential [4] - The growth of tokenized Treasuries is expected to continue, which will likely attract more capital and enhance the overall value of the XRPL [5][11] - Increased liquidity on the XRPL is anticipated to lead to more capital inflow, further enhancing network activity and value [6][9] Institutional Adoption - The launch of Ripple's RLUSD stablecoin, with a market cap of $873 million, is creating native liquidity that can be paired with Treasury tokens for transaction settlements [7][8] - Financial institutions, such as Franklin Templeton, are beginning to integrate their assets with the XRPL, indicating a trend towards greater institutional participation [8][10] - The onboarding of more asset issuers and banks is expected to drive demand for XRPL block space, thereby increasing the value of the native token [10][11] Future Outlook - The asset tokenization trend is gaining momentum, positioning the XRPL for significant growth driven by institutional demand [12] - The ongoing expansion of Treasury capacity and deposits is likely to continue in line with the broader real-world asset market, suggesting a positive trajectory for the XRPL [11][12]

Core Insights - The Polygon network is establishing a strong position in the tokenization space, currently holding over $1.13 billion in total value locked (TVL) from Real World Assets (RWAs) [1][2] - The focus on RWAs is increasing within the industry, highlighted by events such as the Real-World Asset Summit in New York [2] - The "RWA REPORT 2025" indicates a 224% growth in the tokenized asset landscape since the beginning of 2024, driven by the success of tokenized U.S. Treasuries [3][4] Tokenization Trends - Capital is shifting towards higher-yield assets like private credit and bonds as on-chain investors seek greater returns [4] - There is a growing integration of RWAs with DeFi protocols, allowing these assets to be used as collateral and transforming them into programmable components for on-chain finance [4] Polygon's Market Position - Polygon holds a dominant 62% share in the tokenized global bonds market, significantly outperforming Ethereum, which has only a 5% share in this sector [5] - Polygon is also a leading network for tokenized U.S. T-Bills, with approximately 29% of the TVL for Spiko's U.S. T-Bill token (USTBL) [6] Competitive Landscape - Despite Polygon's strengths, it faces competition from other ecosystems like Solana, which recently reached a $500 million valuation in its RWA market [6] - The trend of traditional finance adopting blockchain technology is evident, with major players like Nasdaq filing with the SEC to trade tokenized securities [7]

Core Insights - U.S. Treasuries are recognized as the safest and most liquid assets globally, with Treasury Bills (T-Bills) being short-term, risk-free investments exempt from state and local taxes [1] - Tokenized U.S. Treasuries are gaining popularity, with a record high of $7.45 billion reached on August 27, surpassing the previous peak of $7.42 billion on July 15 [3] Group 1: Tokenized U.S. Treasuries - Tokenized U.S. Treasuries are digital tokens on a blockchain that represent ownership of U.S. government debt or shares of funds holding Treasuries [4] - Implementation of tokenized Treasuries varies, with some tokens representing fractional ownership of T-Bills/T-Notes, while others represent ownership of traditional funds that hold Treasuries [5] - Tokenized Treasuries can exist on public blockchains like Ethereum or on permissioned systems, with Ethereum currently securing $5.2 billion of treasury products, representing a 70% market share [6] Group 2: Major Players in Tokenized Treasuries - BlackRock has launched the BUIDL fund, the world's largest tokenized U.S. Treasury for institutional investors, valued at $2.2 billion and paying daily interest directly to wallets, 90% of which are on Ethereum [7] - Fidelity Asset Management has introduced the Fidelity Digital Interest Token (FDIT), a blockchain-based version of its Treasury money market fund, which mirrors shares of the Fidelity Treasury Digital Fund and is issued on the Ethereum network [8]