A Tuesday press release detailed that the novel “Intraday Yield” feature lets investors accumulate yield equivalent to the duration they retain a tokenized security. This holds true even if the tokenized security is transferred before the day concludes. Moreover, investors can amass yield on non-business days, inclusive of weekends and public holidays.

This cutting-edge functionality will be incorporated into Benji, Franklin Templeton’s tokenization platform. The firm expressed that this could potentially enhance the cryptocurrency sector’s existing model of yield calculation over extended periods. A spokesperson for Franklin Templeton commented, “Intraday Yield is aimed at addressing a long-standing inefficiency in conventional finance: the inflexible and delayed nature of yield calculation and distribution.”

The yield varies in its calculation intervals depending on the asset class. Although it is generally presented in annual terms, payouts can be scheduled in regular increments. In certain scenarios, larger yields may be linked to holding the asset for a more extended duration.

Franklin Templeton is the force behind one of the largest tokenized treasury funds, with approximately $750 million in total assets under its Franklin OnChain U.S. Government Money Fund.

The tokenization of real-world, yield-bearing assets such as US Treasurys, corporate bonds, and individual company equities is gaining traction. As per data from RWA.xyz, the market capitalization of tokenized assets escalated to $23.14 billion on June 9, an uplift from $15.75 billion at the beginning of the year, marking a 46.92% surge year to date.

Other asset managers endorsing tokenized funds include BlackRock and VanEck. Together, these two firms manage more than $2.94 billion in tokenized Treasurys as of June 9.

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Token offerings from Ondo Finance (ONDO), such as OUSG and USDY, which are backed by short-term bonds, have seen their combined market value grow by 53% over the past month, nearing the $1 billion mark. BUIDL, a joint venture between BlackRock and Securitize, saw a 25% increase over the same period, surpassing $800 million. Franklin Templeton’s BENJI token grew by 16% to reach $687 million, while Superstate’s USTB increased by over 63% to hit $363 million.

However, not all tokens performed well. USYC from Hashnote experienced a 20% market cap reduction to $900 million, largely due to a decline in DeFi protocol Usual’s performance after investor backlash. The token serves as the primary backing asset for Usual’s USD0 stablecoin, which saw its supply drop below $1 billion from a January high of $1.8 billion.

“This trend of increasing market cap of tokenized treasuries during the crypto downturn signifies a shift towards quality, mirroring how traditional investors move from equities to U.S. Treasuries during economic uncertainty,” explained Brian Choe, head of research at rwa.xyz. Choe’s observation stems from comparing the growth of tokenized treasuries’ market cap with stablecoins from November to January, during the crypto rally, and from February when the market corrected.

Interestingly, tokenized treasuries exhibited faster growth than stablecoins during the downturn, unlike during the bullish phase. As Choe noted, “This suggests that some investors are not leaving the ecosystem but are instead reallocating capital to safer, yield-bearing assets until the market improves.”

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