ChainCatcher news, JPMorgan analysts indicate that the tokenized government bond market is growing, with tokenized U.S. Treasuries being favored as a yield alternative to stablecoins and potentially challenging the dominance of stablecoins.However, analysts point out that regulatory constraints and liquidity issues suggest that tokenized government bonds may only partially replace stablecoins. Analysts state that large stablecoin issuers like Tether (USDT) and Circle (USDC) do not share reserve yields with users, a practice that not only reduces their income but also classifies stablecoins as securities. Analysts note that this classification would subject them to strict regulatory oversight, which could limit their use as collateral in the cryptocurrency market.

ChainCatcher message, Kaiko released a report stating that interest rate cuts are unlikely to limit the appeal of tokenized government bonds. BlackRock's on-chain tokenized fund BUIDL provides investment in traditional debt instruments such as U.S. Treasury bonds, and BUIDL has quickly become the largest on-chain fund by assets under management (AUM). The fund was launched in March 2024 in partnership with Securitize and has attracted over $520 million in inflows to date.If real interest rates remain stable, the potential stimulative effect of the Federal Reserve's interest rate cuts may be weaker than expected. In this scenario, U.S. Treasury bonds may still be attractive compared to risk assets, as investors may prefer liquidity and safety over risk.

ChainCatcher news, Cynthia Lo Bessette, head of Fidelity's digital asset management division, stated that while she is generally satisfied with the market response to Bitcoin and Ethereum ETFs, it is still uncertain what the demand for other cryptocurrency ETFs (such as Solana) will be.Lo Bessette believes that the SEC may approve ETH ETFs that allow staking of underlying assets in the future, as staking is a key component of the Ethereum ecosystem.Fidelity is discussing with the SEC the possibility of allowing physical contributions, as all BTC and ETH ETFs currently must be cash-settled.Fidelity is exploring asset tokenization, with a particular focus on stablecoins and tokenized government bond products. Lo Bessette stated that tokenization should not only consider whether an asset can be represented on-chain, but also whether it should be represented on-chain, with the key being whether it can facilitate activities that traditional capital markets cannot achieve.

ChainCatcher news, according to a post by Bitcoin.com on the X platform, the total market capitalization of tokenized government bonds has now exceeded $1.5 billion. Tokenized government bonds and real-world asset (RWA) protocols experienced significant growth in 2024. Since April, there has been a surge in demand for government bonds, bonds, and cash equivalents, including tokenized U.S. government bonds, leading to a 35% growth in the RWA sector.The total value locked (TVL) of key player in the RWA DeFi space, @OndoFinance, increased from $221 million to $507 million, while BlackRock's BUIDL and @FTI_US's FOBXX reported growths of 65% and nearly 27%, respectively.

ChainCatcher news, according to CoinDesk, the RWA platform is expanding tokenized government bonds to Polygon, with Ondo's OUSG token being one of the largest on-chain tokenized government bond products, managing $134 million in assets on Ethereum.It is reported that Ondo has issued OUSG on the Polygon network, which is a tokenized version of BlackRock's short-term U.S. government bond exchange-traded fund. The company also plans to introduce its upcoming yield-generating stablecoin alternative (a tokenized money market fund called OMMF) as well as the decentralized lending market Flux Finance developed by Ondo (pending governance approval) to Polygon. (source link)