Chainfeeds Briefing:
With the promotion of the "Genius Act", US dollar credit is accelerating its integration into the on-chain world.
Article Source:
https://mp.weixin.qq.com/s/XBsYTIv8D8N5d9uoKbEKVA
Article Author:
IOSG Ventures
Perspective:
IOSG Ventures: Data indicates that Ethereum's RWA value has entered a clear growth cycle, particularly since April 2024, with market capitalization significantly rising. In 2025, the growth momentum continues to accelerate, primarily driven by BlackRock's BUIDL fund. BUIDL has shown significant growth since March 2025, propelling the overall expansion of Ethereum's RWA ecosystem. Especially in asset allocations dominated by US Treasury projects (75.9% market share) and gold commodities (20.3% market share), BUIDL's scale dominates these areas, quickly surpassing products like PAXG and XAUT. Further analysis reveals that Ethereum's RWA market value is highly concentrated, with BUIDL-led growth demonstrating strong market demand for this asset class. With BUIDL's rise, its growth trajectory has been meticulously analyzed. From March 2025, BUIDL experienced explosive growth, with a month-on-month increase of 8.38% in May, maintaining continuous growth momentum. BUIDL's success stems not only from its efficient market operations but also from its synergies in DeFi integration, such as its collaboration with Ethena Labs' USDtb product, providing more application scenarios. With the GENIUS Act's advancement in stablecoin regulation, the Ethereum stablecoin market has also undergone significant changes. Since 2024, the total stablecoin market value on Ethereum has continued to grow, though at a slower pace compared to other RWA sectors, the market remains resilient. Particularly in small and medium-sized projects, several emerging stablecoins like GHO, M, and USDO saw market value growth by the end of 2024, breaking the $500 million threshold. Top stablecoins like USDT and USDC still dominate the market. Although USDT's market value dropped after exceeding $70 billion in December 2024, it remains stable, while USDC steadily grew from $22 billion to $38 billion by May 2025. However, with the GENIUS Act requiring stablecoin reserves to be 1:1 US Treasuries, many stablecoin issuers face compliance pressures. USDC's reserves are fully allocated to US Treasuries, while other mainstream issuers face challenges in restructuring their reserve compositions. This not only threatens algorithmic and Delta Neutral stablecoins but may also lead to their exit from the US market. Nevertheless, this new regulatory framework brings clearer compliance standards to the market, enhancing institutional confidence in stablecoins and driving more traditional financial institutions to participate in stablecoin issuance. Ethereum's RWA market is deepening collaboration with traditional financial institutions and maintaining market leadership through technological advancements. Ethereum's ecosystem advantage stems not only from its early market penetration but also from its mature decentralized lending, market-making, and derivatives protocols, enabling RWA projects to efficiently improve capital efficiency. BUIDL, as a crucial project in the Ethereum ecosystem, is leading this trend. As the integration of traditional finance and DeFi deepens, BUIDL has been incorporated into the core collateral systems of multiple mainstream DeFi protocols, further promoting RWA product liquidity and market acceptance. Technically, Ethereum is advancing L1 performance improvements, narrowing the gap with high-performance public chains. Simultaneously, Ethereum is accelerating L2 interoperability to achieve cross-chain asset liquidity and enhance RWA market interconnectivity. Particularly, Ethereum's privacy protection mechanisms are continuously improving, dedicated to providing privacy guarantees for RWA transactions, ensuring institutional-level privacy requirements. Additionally, the diversity of the Ethereum ecosystem provides a natural risk isolation mechanism, allowing innovation to continue even under increased regulatory pressure, maintaining the core decentralization concept.
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