Security Tokens Market Cap Hits Record High of $1.2B, Led by Ondo Finance and BlackRock

The market capitalization of top security tokens is at a record high of about $1.2 billion, according to data shared via Dune.

The market capitalization of top security tokens has reached a record high of around $1.2 billion, as per data shared by Dune.

The surge is largely attributed to security tokens issued by Ondo Finance, valued at $395 million, and BlackRock, estimated to be worth $524 million.

Data from the Security Token Market, which tracks over 600 tokens across 35 marketplaces, shows that the aggregate market cap of security tokens hit a record high of $39.5 billion in June.

Security tokens are digital assets on the blockchain that represent ownership of real-world securities, which are regulated by financial watchdogs. For instance, companies can tokenize their shares and sell them on digital securities exchanges.

The largest security token by market cap is the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which was launched in March 2024. BUIDL is issued on Ethereum through Securitize, a leading tokenization platform.

BUIDL trades at a constant price of $1 and pays daily accrued dividends to holder’s wallets on a monthly basis. The fund is invested in cash, U.S. Treasury notes, and repurchase agreements. Holders can transfer their tokens only to pre-approved investors.

On the other hand, Ondo’s flagship security token, USDY, has a market cap of $323 million, also reaching a record high.

USDY, priced at $1.05, is a tokenized note backed by short-term US Treasuries and bank demand deposits. The token is available to non-US investors and is transferable on-chain 40-50 days after purchase.

According to DefiLlama, the total value locked (TVL) in Ondo Finance has reached a record high of $566 million, up from $187 million at the start of the year.

Security tokens fall under the broader category of real-world assets (RWA), which includes other tokenized assets that are inherently regulated.

The TVL in RWA projects has doubled since June 24 and is now on course to update the record high achieved in October 2023.

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