Analysis of Government Bond RWA Projects: Current Development and Future Outlook

Recently, the RWA projects related to government bonds have rapidly developed, with the tokenized government bond asset scale approaching $700 million, an increase of 240% compared to the beginning of the year. MakerDAO's government bond RWA has also grown to several billion dollars. The significance of government bond RWA lies in:

1. Provide a bear market yield space for U-based investors.
2. Promote the launch of hybrid financial products.
3. Improve the profitability of DeFi projects

Currently, there are 5 main business models for government bonds RWA: agency distribution, platform, infrastructure, self-operated, and hybrid models. The underlying assets mainly include US Treasury ETFs, US government bonds, as well as a combination of government bonds, agency bonds, and reverse repos.

The asset business architecture mainly includes trust, SPV, lending platform + SPV, and on-chain fund share, among others. In terms of user requirements, some projects have no investment threshold and KYC, while others have a minimum investment amount and strict KYC.

The profit distribution strategy mainly consists of direct distribution and deposit interest rates. Projects without KYC have advantages in terms of composability.

The RWA project model for government bonds that is expected to win in the future may have the following characteristics:

• The underlying assets use government bond ETFs or selected partners.
• Strong scalability of business architecture
• User-side no-threshold or lightweight KYC
• The yield is consistent with government bond yields.
• Expand the use cases of tokens to enhance composability

In the long run, lightweight KYC projects may have an advantage in the face of increased regulation.