The market value of tokenized U.S. Treasuries this week surpassed the $5 billion for the first time, rwa.xyz data shows, as demand for blockchain-based real-world assets (RWAs) accelerates.

The asset class grew by $1 billion through just two weeks, led by inflows into asset management giant BlackRock’s and digital asset firm Securitize’s market leading BUIDL.

Crypto tokens backed by U.S. Treasuries are at the forefront of the tokenization trend, which have captivated a host of global financial behemoths and digital asset firms. Fidelity Investments is the latest large U.S. asset manager seeking to create a tokenized money market fund, filing for regulatory approval last week to launch its Fidelity Treasury Digital Liquidity on the Ethereum blockchain.

“We see promise in tokenization and its ability to be transformative to the financial services industry by driving transactional efficiencies with access and allocation of capital across markets,” Cynthia Lo Bessette, head of Fidelity Digital Asset Management, told CoinDesk in a statement.

Tokenized Treasuries allow investors to park idle cash on blockchains to earn a yield — like with a money market fund. Increasingly, they are also used as a reserve asset for decentralized finance (DeFi) protocols. Another use case with significant potential is using these tokens as collateral in trading and asset management.

“In looking at use-cases, posting a tokenized asset as non-cash collateral to satisfy margin requirements could improve operational infrastructures and enhance capital efficiency,” she added.

Her words echo Donna Milrod’s, chief product officer of State Street, another Boston-based asset management and banking giant that is exploring tokenization of bonds and money market funds. She said in an earlier interview that collateral tokens could have helped avoid or alleviate, for example, the “liability-driven” crisis in 2022, allowing pension funds and asset managers to use money market fund tokens for margin calls instead of liquidating their assets to raise cash.

Read more: Tokenization Allows More Efficient Collateral Transfers, Digital Asset, Euroclear and World Gold Council Found in Pilot Project

The growth trend won’t stop anytime soon.

Securitize said earlier today that BUIDL is on track to surpass $2 billion in assets by early April from $1.7 billion currently. Meanwhile, Spark, the ecosystem partner of DAI stablecoin issuer Sky (formerly MakerDAO), plans to allocate $1 billion to BUIDL, Superstate’s USTB and Centrifuge’s fund managed with Anemoy and Janus Henderson.

Cardano price has remained in a tight range over the past few weeks as market participants await the next catalyst.

Cardano (ADA) was trading at $0.760, down by 43% from its highest level in December last year. It has underperformed other popular coins like Mantra (OM) and Cronos (CRO) this month. 

Cardano has three main catalysts that could propel it to $2 in the coming months. First, there are signs that whales are accumulating the coin in anticipation of more gains ahead. Data shows that whales have acquired over 240 million ADA coins in the past week, valued at over $182 million. The whale purchasing trend appears to be gaining momentum.

Second, Cardano could benefit from the likely approval of a spot ADA exchange-traded fund by the Securities and Exchange Commission. Grayscale Tuttle Capital Management have already submitted applications.

An ADA fund would be a positive development for the coin, as it could lead to more inflows from institutional investors.

Third, data shows that more investors are staking their Cardano coins, signaling that they intend to hold them long-term. The staking market cap has jumped by 8.1% to $16.1 billion, while the yield stands at 2.60%.

Cardano price technical analysis

The other catalyst for ADA price is that it is in the second phase of the Elliott Wave pattern. This phase is characterized by a brief pullback, followed by the third bullish wave — typically the longest.

Cardano has likely completed the second phase and is poised to enter the third wave, which could push it to the psychological level of $2. This target aligns with the 38.2% retracement level and represents a 160% increase from the current price.

Cardano remains above the 50-week Exponential Moving Average and is forming a bullish flag pattern, a bullish continuation signal comprising a vertical line and a flag-like consolidation.

However, this prediction is based on the weekly chart, meaning the pattern could take time to fully develop. The flag section of the bullish flag has already taken more than three months to form.

Circle plans to launch USDC in Japan on March 26 through a partnership with local heavyweight SBI Holdings, marking a significant milestone for both the global stablecoin market and Japan’s blockchain ecosystem.

“Japan has long been at the forefront of the adoption of Web3 and blockchain technology, and Japan’s regulatory leadership has similarly been out in front on clear rules for the use of stablecoins in the Japan financial system,” said Jeremy Allaire, co-founder and CEO of Circle said in a release.

The launch comes weeks after Circle and SBI received regulatory approval from the Japan Financial Services Agency (JFSA) earlier in March under the country’s electronics payment framework.

Allaire said in a post on X that Circle had spent two years engaging with regulators in Japan in preparation for the launch.

“We believe this initiative will enhance financial accessibility and drive digital asset innovation, aligning with our broader vision for the future of payments and blockchain-based finance in Japan,” Yoshitaka Kitao, representative director, chairman, president and CEO of SBI Holdings said in a statement.

USDC currently has a market cap of around $59.7 billion, according to CoinGecko data.

The Philippines largest digital wallet, GCash, recently added support for USDC.

According to a 2024 report from Circle, the Asia-Pacific region accounts for 29% of global digital currency transaction volume, ahead of Western Europe at 22% and North America at 19%.