Tokenized U.S. Treasuries have reached a record $15.35 billion U.S. in value locked as traders shift expectations to a Federal Reserve interest rate increase this year.
An annualized U.S. inflation reading of 3.8% for April has raised the chances that interest rates will rise in coming months, sending traders into tokenized Treasuries as they seek yield beyond spot cryptocurrencies.
The total value locked in tokenized Treasuries has surged to $15.35 billion U.S., topping the previous mid-April peak of $15.10 billion U.S., according to market data.
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Flows into yield-bearing tokenized Treasuries could rise further if economic data continues to show rising inflationary pressures in America, say analysts.
Tokenization is the process of creating blockchain-based representations of traditional financial assets such as stocks, bonds, and exchange-traded funds (ETFs).
Tokenization is one of the hottest trends in finance as it can reduce settlement times, improve transparency, and enable around-the-clock trading.
The tokenization of U.S. government bonds, known as Treasuries, has been particularly popular given their stable and reliable nature.
Bonds, especially U.S. Treasuries, are viewed as a safe haven asset in times of geopolitical uncertainty and market upheaval.
The tokenized real-world asset market now exceeds $32 billion U.S., according to market data.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
