Tokenized U.S. Treasury Products Hit All-Time High Amid Market Adjustment

# Digital Asset Investors Turn to Tokenized U.S. Treasury Products Amid Market Adjustment Digital asset investors have recently shifted their focus to tokenized U.S. Treasury products amid market adjustments, as the total market value of these assets reached an all-time high of $4.2 billion, CoinDesk reported on the 13th. Since late January, this asset class surged by $800 million, demonstrating significant growth. Ondo Finance's two token offerings, OUSG and USDY, alongside BUIDL co-issued by BlackRock and Securitize, Franklin Templeton's BENJI, and Superstate's USTB, all saw growth last month. In contrast, Hashnote's USYC experienced a decline. Ondo Finance's short-term bond-based tokens OUSG and USDY saw their market value jump by 53% in the past month, nearing $1 billion. BUIDL, issued by BlackRock and Securitize, rose 25% over the same period, surpassing $800 million. Franklin Templeton’s BENJI increased by 16% to reach $687 million, while Superstate’s USTB grew by over 63%, reaching $363 million. However, Hashnote’s USYC saw a market value decline of over 20%, dropping to $900 million. This decrease is primarily attributed to the downward trend of the DeFi protocol ‘Usual’ and investor backlash. USYC serves as a major collateral asset for Usual's USD0 stablecoin, whose supply plummeted from $1.8 billion in January to below $1 billion. Brian Choe, Head of Research at rwa.xyz, stated that the growth in the market value of tokenized treasuries during the recent crypto market adjustment reflects a "flight to quality." He compared it to traditional investors moving from stocks to U.S. Treasuries amid economic uncertainty. Choe analyzed the period from last November to this January when the crypto market was on the rise, comparing it to the corrective period since February. During the bullish phase, the market value of stablecoins increased more rapidly than that of Treasury-backed tokens. However, in the recent bearish phase, Treasury-backed tokens outpaced stablecoin growth. "This suggests that some investors are reallocating their capital to safer, income-generating assets until market conditions improve, rather than leaving the ecosystem entirely," Choe explained.