Solana Onchain U.S. Treasuries Up 102% This Month - What’s Driving RWA Growth?

Tokenized securities and treasury assets have long been considered one of the most exciting growth areas for blockchain technology. Bringing traditional financial assets onchain is expected to introduce trillions of dollars to the decentralized economy.

The crypto industry’s RWA (Real World Assets) sector has attracted plenty of attention in 2024, outperforming rival fields throughout the year.

Despite residing predominantly on Ethereum, treasury assets appear to be finding a new home on Solana. However, the market cap of Solana-based treasury assets has risen by 102% in the last 30 days, suggesting that tokenized U.S. treasuries may be migrating to Solana.

ONDO’s $USDY Biggest Source of Tokenized Treasury Assets

Ondo Finance, a multichain RWA protocol, continues to drive tokenized traditional asset adoption on the Solana blockchain. Ondo’s primary asset $USDY, a yield-bearing stablecoin, commands the bulk of Solana’s onchain RWA presence. 

Boasting over $106M in TVL (Total Value Locked) based on DefiLlama data, $USDY comprises 89% of Solana’s RWA market dominance. 

Unsurprisingly, Solana’s impressive 102% jump in U.S. Treasury asset TVL came almost entirely from $USDY growth. According to Step Finance data, Solana-based $USDY supply increased by 117%, spiking from 46M to 100.5M on September 23, 2024.

On top of a 117% increase in its Solana-based token supply, $USDY’s holder account has also increased to 2,256, rising by 107% in the last month. Based on SolScan data, over 50M $USDY tokens were minted on September 23rd. Since then, all newly minted tokens have been further distributed to six separate, unnamed addresses.

$USDY’s dramatic growth in September seems unrelated to direct news or announcements from Ondo Finance. However, the increase in $USDY supply does coincide with Ondo’s announcement of intent to submit proposals to the Sky Ecosystem’s Tokenization Grand Prix.

Sky, formerly MakerDAO, announced its intention to expand its services to the Solana network at Breakpoint 2024. While unconfirmed, it is likely that the increase in $USDY supply is linked to Ondo’s submissions to the Sky event.

Solayer to Bolster Onchain Treasury

While Ondo Finance dominates Solana-based U.S. Treasury assets, competitors are emerging to challenge the incumbent.

Solayer recently unveiled its native yield-bearing stablecoin, $sUSD, which leverages U.S. T-Bill yield to deliver sustainable, RWA-backed rewards to holders. Working in collaboration with OdenEden, Solayer expects to launch the yield-bearing stablecoin in the coming weeks.

Treasury Asset Growth Potential

Solana has been making progress in the RWA sector, but Ethereum still dominates all other networks in this field. According to rwa.xyz data, Ethereum commands over 70% of onchain Treasury asset market share, with Solana sitting in third position behind Stellar.

Ethereum’s significant headstart looms large over rival chains, but the vast discrepancy also suggests ample opportunity for disruption. Throughout 2024, Solana has rivaled Ethereum in other key metrics, like DEX trading volume; could the wider RWA sector be next?

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