Ondo Surpasses Securitize in Tokenised Assets Value

Ondo Moves Ahead

On November 3, a significant shift was observed in the tokenisation market when Ondo’s assets were valued at $4.07 billion, closely following Securitize, which stood at approximately $4.15 billion. In just two days, while Ondo maintained its value, Securitize saw a decline, dropping to $3.97 billion.

Increasing Gap by November 9

By November 9, the disparities became more pronounced. Ondo recorded a valuation of $4.04 billion, while Securitize experienced a further drop to $3.81 billion. This shift represented a gap of around $226 million.

One of the prominent factors influencing this change was the performance of BlackRock’s BUIDL, which is crucial to Securitize’s overall valuation. On November 3, BUIDL’s assets were about $2 billion but had decreased to approximately $1.8 billion by November 8, effectively eroding Securitize’s earlier advantage.

Connection with BlackRock’s BUIDL

BUIDL, or the BlackRock USD Institutional Digital Liquidity Fund, is under the management of BlackRock Financial Management yet relies on Securitize’s tokenisation technology. Thus, any redemptions from BUIDL impact Securitize's asset tallies significantly, despite Securitize not managing the underlying investment portfolio.

This interrelationship highlights how investor recourse from BlackRock’s fund subsequently diminishes Securitize’s market stance. The dynamics of asset withdrawals demonstrate the pivotal role of technology providers in the ecosystem.

Ondo’s Product Diversity vs. Securitize’s Concentration Issues

As per RWA.xyz, Ondo currently boasts a diverse array of 486 tokenised assets, dwarfed compared to Securitize’s relatively modest selection of just 50. However, both platforms encounter challenges with concentration in their respective offerings.

Significantly, Ondo’s yield-bearing tokens, which are largely backed by short-term US Treasuries and bank deposits, constitute nearly $2.39 billion, amounting to 59% of its total value. In contrast, Securitize has approximately 47% of its valuation linked to BUIDL.

RWA.xyz’s observations indicate that the prominence of such treasury-related products within their inventories can significantly skew perceived asset value across the platforms.

Investor Dynamics in the Landscape

Moreover, investor concentration also creates imbalance within their standings. Insights from OnChain Benchmark revealed that the Grove capital allocator, a participant in the Sky ecosystem, held 26.5% of BUIDL but withdrew entirely by November 8. This single entity accounted for a notable portion of BUIDL’s net decline over time.

Grove’s systematic withdrawal illustrates how dependent the ranking dynamics are on a handful of significant investors. While the final $200 million in redemptions remains untracked in terms of specific contributors, it is clear that dependency on major players colors the asset landscape heavily.

Ultimately, with Ondo's value so reliant on the demand for USDY, which highlights almost 60% of its asset base, and BUIDL’s close to half of Securitize’s valuation, the current leaderboard primarily reflects trends in treasury-linked products rather than representing a diversified demand for the broader range of assets each platform tokenises.