RWA market is gaining momentum: Grvt targets $100 million in USDY, Coinbase opens tokenization hub in Abu Dhabi
The real-world asset (RWA) tokenization sector continues to demonstrate explosive growth, and recent developments only confirm this. The hybrid CeDeFi platform Grvt has announced a strategic partnership with issuer Ondo Finance. Over the next twelve months, the exchange plans to grow its position in the tokenized product USDY to an impressive $100 million.
A New Era of Passive Income
A key element of this deal is the integration of an annual percentage yield (APY) of 3.5% into the existing base rate of the Grvt Earn product. This means that platform users providing liquidity will receive competitive returns backed by institutional U.S. Treasury bonds. This approach not only enhances the platform's appeal but also seamlessly embeds traditional financial instruments into the DeFi ecosystem, complementing existing integrations such as the collaboration with Aave.
The Scale of Ondo Finance
Currently, Ondo Finance's total assets under management (AUM) stand at approximately $2.59 billion. The bulk of this is concentrated in USDY, which accumulates $2.1 billion distributed across eight networks. The second product, OUSG, available only to qualified U.S. investors, manages assets of $500 million. Grvt's planned position of $100 million is not just a number—it represents roughly 3.8% of the entire current USDY AUM, making the exchange one of the largest holders of this asset.
This partnership is a striking indicator of a paradigm shift. Tokenized Treasury bonds are ceasing to be merely an investment product and are transforming into a foundational infrastructure layer for DeFi platforms. For Ondo, this is also an elegant solution to the distribution problem, which has long been a bottleneck for scaling USDY. The integration with Grvt Earn allows for expanded reach without the need for direct retail market exposure.
Coinbase Strengthens Its Position in the Middle East
Meanwhile, Coinbase is betting on geographic expansion. The company has received approval from the Financial Services Regulatory Authority of the Abu Dhabi Global Market and is opening an international tokenization hub there. Plans include offering digital securities backed by underlying equities. This is a logical step amid growing demand from traditional financial giants, which are actively moving funds, bonds, and stocks onto blockchain rails to simplify settlement and enable 24/7 trading.
The new division will operate in parallel with Coinbase's derivatives business in Dubai, creating two powerful footholds in the UAE for expansion beyond the U.S. market.
My take: The actions of Grvt and Coinbase are a clear signal that institutional money is seriously viewing RWA as a bridge between traditional finance and DeFi. We are moving toward a world where on-chain markets will be backed by real assets, and those who seize this niche now will gain a colossal advantage in the coming years. It remains to be seen how quickly regulators and major players adapt to this new reality.