WooX, a cryptocurrency exchange, introduced tokenized versions of Traditional Treasury Bills (T-Bills) as an innovation, making it the initial platform to extend this opportunity to individual investors in the tokenized form.
On April 22, as announced in a blog post from Woo X, the platform introduced RWA Tokenization Vaults, named RWA Earn Vaults. These new vaults allow users to generate returns by simply keeping their USDC tokens with Circle, instead of having to sell or trade them.
“With the RWA Earn Vaults, all @WOO_X users can now earn stable, predictable yield on their USDC holdings backed by U.S. Treasury Bills without having to jump through any extra hoops.”
US T-bills exclusively support the interest rates of RWA Vaults, providing USDC owners with an annual percentage rate (APR) ranging from 4.5% to 4.7%. (Source: announcement)
“User subscriptions accumulate real yields, fully backed by U.S. Treasury Bills, with current APRs for 7-day and 28-day terms at ~4.5% and ~4.75% respectively.”
A yield-generating product was introduced in collaboration with OpenTrade, a London-based tokenization platform supported by Circle.
Circles is responsible for releasing the world’s second largest stablecoin, USDC, with a market value of around $34 billion. This ranking is surpassed only by Tether USD (USDT) with its impressive market cap of over $109 billion, based on information from CoinMarketCap.
RWAs were the second most profitable crypto narrative in Q1 2024
During the initial three months of the year 2024, a report from CoinGecko revealed that RWAs ranked as the second most lucrative storyline in the cryptocurrency sector, next only to the most profitable one.
“The memecoin narrative was 4.6 times more profitable than the next best-performing crypto narrative of tokenized real-world assets (RWA) and 33.3 times more profitable than the layer 2 narratives with the lowest returns in Q1 this year,” said CoinGecko analyst Lim Yu Qian.
Demonstrating increasing institutional investment in the Real Estate Investment Trusts (REITs) or Real Asset sector, BlackRock, the world’s largest asset manager, debuted a new USD Institutional Digital Liquidity Fund on March 20, with a market value of over $298 million as reported by Etherscan. (Note: Please ensure that the acronym “RWA” in your original text stands for Real Estate Investment Trusts or Real Assets for clarity.)
Approximately $1 billion in U.S. Treasuries were tokenized using 17 different platforms by March 28, and this amount had grown to $1.15 billion by April 22, based on data from Dune.
At present, the Franklin Templeton’s Franklin OnChain U.S. Government Money Fund (FOBXX) holds the title as the biggest treasury tokenization fund with a value exceeding $390 million, based on Dune’s latest update.
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2024-04-22 14:34