RWA market is gaining momentum: Grvt expands its position in USDY by $100 million, Coinbase establishes itself in the UAE
The real-world asset (RWA) tokenization sector continues to demonstrate explosive growth, and recent developments only confirm this trend. Hybrid CeDeFi platform Grvt has announced a strategic partnership with tokenized asset issuer Ondo Finance. Over the next twelve months, the exchange intends to grow its position in the USDY product to $100 million, marking an important step in integrating institutional instruments into decentralized finance.
The mechanics of the partnership are as follows: a base annual percentage yield (APY) of 3.5% will be integrated into the single rate that users already receive through the Grvt Earn service. This will allow the platform's clients to passively earn on provided liquidity, combining yield from tokenized U.S. Treasury bonds with other sources, including integration with the Aave protocol.
Based on my estimates, drawn from data from the RWA.xyz aggregator, Ondo Finance's assets under management (AUM) currently stand at approximately $2.59 billion. The key driver here is USDY — a tokenized instrument backed by short-term U.S. government bonds and bank deposits, with an AUM of $2.1 billion distributed across eight networks. The second product, OUSG, available only to qualified U.S. investors, attracts $500 million. Grvt's planned $100 million position would represent roughly 3.8% of the current USDY volume.
This partnership is not just a one-off deal but a reflection of a deeper market transformation. Tokenized Treasury bonds are ceasing to be a niche investment product and are becoming core infrastructure for DeFi platforms. For Ondo, this is also an elegant solution to the distribution problem: integration with Grvt Earn allows for expanded reach without the need to enter the retail market directly.
Grvt, operating on the ZKsync L2 solution, raised $19 million in a Series A round in September 2025, and on July 30, 2026, the TGE of its native token GRVT took place. This indicates that the project is in an active scaling phase.
In parallel, Coinbase is taking an important step in geopolitical expansion. On August 11, the company announced the opening of an international tokenization hub in Abu Dhabi, having obtained a license from the Financial Services Regulatory Authority of the International Financial Centre. The new entity will focus on issuing digital securities backed by underlying shares, serving as a bridge between traditional finance and blockchain. This division will operate in conjunction with Coinbase's derivatives business in Dubai, creating two key footholds in the UAE for expansion beyond the U.S. market.
It is worth recalling that in August, Ondo Finance experienced an internal conflict over control of the project following the death of its founder, adding intrigue to the development of this story.
My view: The actions of Grvt and Coinbase are a clear signal that institutional players no longer view RWA as an experiment. Tokenization is becoming the de facto standard for liquidity and settlement. However, despite the optimism, the market must go through a phase of consolidation and regulatory clarity before we see truly mass adoption.