Eyeing the Future: Spark's $1B Expansion in US Treasury-Backed RWAs
Expanded Investment of $1 Billion by Spark in Advancement of Tokenized Government Securities Market
Unleashing the Power of On-Chain Capital Allocation
In a meteoric rise, Spark, a key component of the revamped Sky (formerly MakerDAO) universe, has decided to pour an extra $1 billion into tokenized US Treasury-backed real-world assets (RWAs), bumping its total TVL (Total Value Locked) to a staggering $2.4 billion.
The influx of funds will find its way to the same strongholds as before - BlackRock/Securitize's BUIDL, Superstate's USTB, and Centrifuge-Anemoy's JTRSY, the trio that clinched the victories in Spark's Tokenization Grand Prix.
Acting as a dominant force now in control of more than two-thirds of the $3.5 billion tokenized US Treasuries market, Spark is solidifying its hold on on-chain RWA deployment, giving it unmatched dominance in this growing niche.
In the Heart of the DeFi Revolution
While mainstream adoption of DeFi (Decentralized Finance) is picking up, with the Asia Pacific and emerging markets leading the charge, Spark's latest capital injection signifies bullish sentiment in the sector.
paradigm-shifting proposal, the "Tokenization Grand Prix," initiated in July 2024, allocated capital to three RWA (Real-World Asset) protocols.
Juxtaposing crypto-native volatility, these tokenized RWAs, primarily short-term US Treasuries, are being actively adopted as reserves by major DeFi protocols aiming to secure yields and reduce volatility risks.
With the nexus of DeFi and tokenized RWAs growing ever closer, it's no surprise that Spark is at the forefront of this revolution. The Tokenization Grand Prix, an open call for asset issuers to submit proposals, saw 39 applications reviewed by Steakhouse Financial, ultimately leading to the onboarding of these three winners.
The magnitude of this deployment positions Spark well above its peers in the combined $6 billion to $6.16 billion tokenized treasury market, cementing its status as the industry titan in the tokenized US Treasuries segment.
A Rising Star: Spark's Pivotal Role in Sky
Since the governance overhaul was announced in August 2024, Spark's role within Sky has undergone a radical transformation and is now operating as a standalone "Star" (Sky's designation for modular sub-protocols). The first quarter of 2025 saw Spark reporting around $40 million in revenue and successfully launching a USDC Savings Vault, attracting more than $41 million in deposits.
Additionally, Spark expanded its footprint to Arbitrum and Base earlier this year, demonstrating its agility and adaptability in evolving markets.
Edited by Sebastian Sinclair
Daily Debrief Newsletter
- Spark, a significant part of the revamped Sky (previously MakerDAO), has mobilized an additional $1 billion to invest in tokenized US Treasury-backed real-world assets (RWAs), taking its TVL to an impressive $2.4 billion.
- The substantial influx of funds will primarily flow to the same entities as before: BlackRock/Securitize's BUIDL, Superstate's USTB, and Centrifuge-Anemoy's JTRSY, which clinched wins in Spark's Tokenization Grand Prix.
- As the controller of more than two-thirds of the $3.5 billion tokenized US Treasuries market, Spark is steadily consolidating its command over on-chain RWA deployment, making it the undisputed leader in this burgeoning sector.
- With the DeFi (Decentralized Finance) sector winning over mainstream adopters, particularly in the Asia Pacific and emerging markets, Spark's recent capital injection underscores growing optimism within the sector.
- Initiated in July 2024, the paradigm-shifting proposal, the "Tokenization Grand Prix," allocated capital to three RWA protocols, with the goal of fostering on-chain RWA growth.
- By adopting tokenized RWAs, primarily short-term US Treasuries, as reserves, major DeFi protocols aim to secure yields and minimize volatility risks, representing a growing synergy between DeFi and tokenized RWAs, with Spark at the vanguard of this revolution.
