Tokenized US Treasurys Surge 50x as Institutions Chase On-Chain Yield
Tokenized US Treasurys have become a rapidly expanding segment in the real-world asset (RWA) market, with market capitalization surging from under $200 million in January 2024 to nearly $7 billion by late 2025. This growth is driven by increased institutional demand for on-chain yield and broader adoption of blockchain-based settlement for traditional fixed-income assets. BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) leads the market with close to $2 billion in assets, while other major tokenized Treasury products include Circle’s USYC, Superstate’s USTB, and Ondo Finance’s OUSG. These products offer regulated, tokenized access to US government debt, enabling efficient settlement and daily yield accrual. Banks and institutions, such as DBS, are piloting and adopting tokenized funds to enhance capital efficiency and collateral management. Tokenized Treasurys provide a regulated entry point into decentralized finance (DeFi), reflecting a broader trend of traditional finance integrating with blockchain technology. The tokenization market is also seeing rapid growth in private credit, offering yields above traditional vehicles.
