Neither Bitcoin nor Gold: This "tokenized asset" is a refuge for big investors in the face of the US recession.

Neither Bitcoin nor Gold: This "tokenized asset" is a refuge for big investors in the face of the US recession.

The economic recession in the US is causing major investors to diversify into tokenized assets backed by corporate debt, as digital financial havens.

The US economic dynamic, which is experiencing visible signs of recession, is changing the most conservative and traditional investment strategies. Faced with this scenario, large investors have turned their attention to tokenized assets backed by real debt, with corporate debt and bonds emerging as key players. 

According to data from the RWAxyz platform, which monitors the tokenized real-world asset (RWA) market, this trend represents a significant shift in how safe havens are perceived in the digital realm.

Diversify your portfolio: buy and manage crypto on Bit2Me

The rise of tokenized real-world assets

The tokenized asset market has experienced remarkable growth in recent years, with a total value that has exceeded 30.000 million and continues to expand. Tokenization allows traditional assets such as corporate debt or Treasury bonds to be converted into digital instruments, giving them features such as greater liquidity and transparency regarding investment management and monitoring.

RWAxyz reveals that more than half of the total value of the tokenized asset market, specifically 58%, is made up of tokenized private credit, while tokenized US Treasury debt accounts for around 34%. This predominance reflects the growing preference for digitally restructured corporate and public debt instruments. Unlike digital assets not backed by traditional assets, these offer a level of certainty and fluidity that aligns with the expectations of major financial players.

Real-World Asset (RWA) Tokenized Marketplace.
Source: RWAxyz

Tokenized corporate debt as a preferred alternative

Despite the continued popularity of US Treasury bonds, tokenized corporate debt has gained attention as a more balanced option in terms of risk and return. Tokenization on blockchain has facilitated greater accessibility, allowing institutional investors to manage more diversified portfolios with a level of transparency previously lacking in traditional markets.

This shift is also explained by the current economic climate, in which instability and expectations of recession are driving investors to seek options that maintain a balance between capital protection and income generation. Tokenized corporate debt combines these elements, offering products that maintain good returns without sacrificing security or liquidity. Furthermore, the increase in regulations and clear frameworks in the United States has contributed to strengthening confidence in these digital vehicles.

Access cryptocurrencies and protect your capital in times of recession

Beyond Bitcoin: The New Era of Stability in Tokenized Digital Assets

In the current investment landscape, Bitcoin and tokenized gold are no longer the only option for those seeking refuge from financial uncertainty. While both remain valuable assets, many investors are turning their attention to a new generation of tokenized digital assets backed by real debt. These instruments not only offer lower volatility but also an attractive combination of security and liquidity, which is essential today.

According to experts, this shift responds to a growing need for stability and transparency. Tokenized assets with tangible backing provide a much clearer and more reliable experience for investors, something that blockchain technology enhances thanks to its immutable records and the ability to divide assets that were previously inaccessible to many. 

Furthermore, the evolution of the regulatory framework plays a decisive role. Continued collaboration between regulators and crypto companies, such as Ripple, is laying the groundwork for clearer and more coherent regulations. This clarity is essential for the ecosystem to grow in an orderly and sustainable manner, reinforcing the confidence of users and institutions in digital assets while recognizing the value that Bitcoin brings as a pioneer.

Tokenization is transforming the portfolios of large investors

Data provided by RWAxyz illustrates how the total value of tokenized assets has been steadily increasing since 2019, with a particularly marked acceleration beginning in 2021. The dominant share of tokenized private credit is clearly visualized in the platform's chart, showing that this category is not only growing in volume but also garnering the most attention from investors seeking instruments with higher relative returns.

For its part, tokenized US Treasury debt, while representing a smaller portion, continues to grow significantly, confirming its importance within the global portfolio of tokenized assets. 

Other segments, such as corporate bonds and tokenized institutional alternative funds, although with lesser weight, complement this diversified offering that large investors are taking advantage of.

In conclusion, the evolution of the tokenized asset market shows a tangible shift in the preferences of large investors in light of the US economic and financial landscape. Tokenized corporate debt and bonds are positioning themselves as solid and attractive safe havens, providing a combination of affordable yield, low relative risk, and liquidity.

Build a solid portfolio with crypto on Bit2Me