Tokenized U.S. Treasuries Surge Past $8.7 Billion

The market for tokenized U.S. Treasuries now has a total value of assets under management exceeding $8.73 billion, according to data from RWA.xyz. This growth shows a continuing trend of traditional finance (TradFi) utilizing blockchain technology to offer digital exposure to reliable sovereign debt.

The total value has grown by nearly 1.8% over the past seven days, while the number of holders participating in this market has increased to over 57,900, up more than 6% over the same period. 

This asset class digitizes ownership of U.S. government bonds and money market funds across several blockchains. It provides a regulated, yield-bearing product accessible in the digital asset ecosystem. The seven-day average yield (APY) for these products is approximately 3.72%.

Securitize holds the largest market share

The market is currently dominated by a few major players driving institutional adoption. Securitize holds the largest market share at around 33.5%, with tokenized products valued at over $2.92 billion. This is supported by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which accounts for nearly $2.83 billion.

Other major protocols contributing to the tokenized treasury market include Ondo, with a market cap of approximately $1.47 billion,and Circle, whose single treasury product has grown to over $948 million in value. Ondo is expanding strongly in the tokenization market and has recently integrated Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to access real-time pricing feeds.

 The entrance and expansion of established asset managers such as Franklin Templeton, holding over $852 million, and WisdomTree, holding over $642 million, show institutional validation of this sector, which is rapidly maturing within the broader Real-World Asset (RWA) tokenization movement.

Bridging the gap between TradFi and DeFi

The tokenization of government securities is a step in bridging the gap between TradFi and decentralized finance (DeFi). The pivot to liquid and regulated assets like U.S. Treasuries offers clear advantages: transparent on-chain ownership, faster settlement times, and the ability for investors to earn a stable, low-risk yield without leaving the blockchain.

The consistent scaling of this market, from crossing the $100 million in mid-2023, surpassing $1 billion shortly after, to the current $8.7 billion valuation, shows sustained demand. 

This history suggests that both crypto-native and traditional investors view tokenized treasuries as an indispensable product offering for portfolios and integrate the stability of sovereign debt into the digital future of finance.

Also Read: Did Trump’s Pardon Push Ro Khanna to Act? Inside the Ethics Bill Debate