The $3.4 billion tokenized Treasuries market has witnessed a significant change in rankings. The rapid growth of asset manager Hashnote’s USYC token has catapulted it to the top, surpassing BlackRock and Securitize’s BUIDL.
USYC Token Sees Explosive Growth
Hashnote’s USYC token has experienced a remarkable surge in market capitalization, growing five-fold over the past three months. According to data from rwa.xyz, its market cap now stands at over $1.2 billion, eclipsing BUIDL’s $450 million.
Market Cap of Hashnote’s USYC and BUIDL Over Time
| Date | Market Cap (USYC) | Market Cap (BUIDL) |
| — | — | — |
| Mar 01 | $230M | $450M |
| Apr 01 | $460M | $550M |
| May 01 | $1.2B | $350M |
The growth of USYC is a testament to the importance of interconnecting tokenized products with decentralized finance (DeFi) applications and presenting their tokens as building blocks for other products, also known as composability.
Tokenization and DeFi: A Winning Combination
Hashnote’s rapid growth underscores the significance of combining tokenization with DeFi applications. By doing so, they have created a product that is more attractive to investors seeking yield-generating stablecoins.
USD0 Stablecoin: A Game-Changer in the Market?
Usual’s USD0 stablecoin has been a significant contributor to USYC’s growth. The protocol aims to redistribute a portion of revenues from its backing assets to holders, providing rewards for end-users and giving them access to the yield generated.
According to David Shuttleworth, partner at Anagram:
"The bull market triggered a massive inflow into stablecoins, yet the core issue with the largest stablecoins remains: they lack rewards for end users and do not give access to the yield they generate. Moreover, users do not get access to the protocol’s equity by holding USDT or USDC."
Usual’s appeal lies in its ability to redistribute yield along with ownership of the protocol back to users.
Governance Token (USUAL) Airdrop Boosts Growth
The recent governance token airdrop and exchange listing on Binance have further fueled USYC’s growth. The token has appreciated 50% since its listing, vastly outperforming the broader crypto market.
BlackRock’s BUIDL: Rapid Growth Driven by DeFi Platform
BlackRock’s BUIDL also experienced rapid growth earlier this year, driven by DeFi platform Ondo Finance making the token the key reserve asset of its yield-earning product, the Ondo Short-Term US Government Treasuries (OUSG) token.
Conclusion
The shift in rankings in the $3.4 billion tokenized Treasuries market highlights the importance of combining tokenization with DeFi applications and presenting tokens as building blocks for other products. The growth of USYC and BUIDL demonstrates the increasing appetite of crypto investors for yield-generating stablecoins.
References
- rwa.xyz: Market cap data
- CoinGecko: Price data
- Anagram: Expert analysis
What’s Next?
As the tokenized Treasuries market continues to evolve, it will be interesting to see how USYC and BUIDL maintain their growth momentum. Will other DeFi platforms follow suit, creating more yield-generating stablecoins? Only time will tell.
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