New data reveals that 88% of tokenized U.S. Treasury bonds are issued by only six organizations
Information provided by the RWA.xyz platform shows that the sector remains heavily concentrated around specific funds, indicating serious centralization during the development of the tokenization market.
BlackRock Leads the Pack
In the market for tokenized Treasury bonds, the largest share belongs to BlackRock. The company’s BUIDL fund is far ahead of competitors with a market value of $2.5 billion. This valuation is 360% higher than that of its nearest rival, as BlackRock announced it managed a total of $11.6 trillion in assets in the first quarter of this year.
The other top funds completing the top six are Franklin Templeton’s BENJI fund ($707 million), Superstate’s USTB fund ($661 million), Ondo’s USDY fund ($586 million), Circle’s USYC fund ($487 million), and Ondo’s OUSG fund ($424 million). These six giant funds represent 88% of all tokenized Treasury bonds in the market.
According to RWA.xyz data, there has been a significant consolidation process among major tokenized Treasury funds since the beginning of this year. Notably, the BUIDL fund increased its market value by 291% between January 1 and April 24, now representing 41.1% of the tokenized Treasury bonds market alone.
Concerns Over Centralization Grow
Tracy Jin, the operations director of MEXC, highlighted the downsides of increasing centralization in tokenized real-world assets (RWA). According to Jin, most tokenized assets are issued on licensed or semi-centralized blockchain networks, increasing authorities’ power to impose restrictions or confiscate assets.
Jin stated, “Tokenized assets like real estate or bonds are tightly bound to national legal systems.” This implies that the promised freedoms and transparency of tokenized assets may not always hold true in practice.
Despite the opportunities offered by the tokenization process, the control mechanisms over these assets ignite new discussions about the sector’s future. Notably, investors’ expectations regarding ownership rights and the ability to transact freely can conflict with traditional legal frameworks.
The market value of tokenized real-world assets has gained significant momentum since the beginning of the year. According to RWA.xyz’s data, the sector’s total market value reached a new peak of $21.3 billion on April 21.
This rapid growth is supported by various factors, including regulatory clarity, solutions for interoperability between blockchain networks, increasing liquidity options, and the evolution of identity from physical to digital. Particularly, allowing smaller investors access to these assets through fractional ownership opens the market to a broader audience.
Industry analysts suggest that assets like tokenized Treasury bonds create a strong bridge between traditional finance and the blockchain world. However, the risks of centralization raise concerns about the long-term sustainability of this new structure.