Research firm Kaiko believes that tokenized Treasuries will continue to attract investors, even in the face of anticipated US Federal Reserve rate cuts, which can often diminish the appeal of fixed-income assets.
According to the firm’s second-quarter market report, interest in these tokenized funds continues to grow due to their attractiveness to investors seeking liquidity and security.
Kaiko explained that even with potential rate reductions, the real Fed funds rate — adjusted for inflation — may remain stable or even increase. This scenario could keep Treasuries attractive compared to riskier assets, as investors prioritize liquidity and safety.
Growing activity
According to Kaiko’s research, BlackRock‘s on-chain tokenized fund, BUIDL, has become the largest on-chain fund by assets under management (AUM) since its launch in March, with net inflows of $520 million as of June-end.
The fund is part of a growing trend of…
