Treasurys | Crypto

From niche experiment to $7 billion market, tokenized US Treasurys are quietly becoming a major driver of institutional onchain yield. Tokenized US Treasurys have emerged as one of the fastest-growing segments of the real-world asset (RWA) market, with data pointing to 50x growth in less than two years amid rising institutional demand for on-chain yield. Data from Token Terminal shows that the combined market capitalization of tokenized US Treasury products has exploded from well under $200 million in January 2024 to almost $7 billion in late 2025. The growth underscores the rapid acceleration of onchain adoption for government-backed debt instruments. At the center of this expansion is BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), which is widely regarded as the flagship product of the tokenized Treasury market.  Read more

The SEC gave DTCC the green light to launch a tokenization service last week, and the company will be starting by minting US Treasurys on Canton. The Depository Trust and Clearing Corporation said it is set to bring tokenized US Treasurys onchain, and plans to expand to a “broad spectrum” of assets in the future. The DTCC said on Wednesday that it plans to “enable a subset of US Treasury securities” custodied at its subsidiary, the Depository Trust Company, to be minted on the Canton Network, a permissioned blockchain created by the fintech company Digital Asset. “This collaboration creates a roadmap to bring real-world, high-value tokenization use cases to market, starting with US Treasury securities and eventually expanding to a broad spectrum of DTC-eligible assets across network providers,” said DTCC CEO Frank LaSalla. Read more

The latest trial explored multiple stablecoins and showed tokenized US Treasurys can be reused instantly across counterparties on shared infrastructure. Digital Asset and a group of financial institutions have completed a second round of onchain US Treasury financing on the Canton Network, introducing real-time collateral reuse and expanding the number of stablecoins involved. Five transactions were executed in the newest phase, building on the July pilot, which first demonstrated that US Treasurys and the USDC (USDC) stablecoin could be combined to finance and settle transactions on the blockchain. In the latest trial, the companies used multiple stablecoins to finance positions against tokenized US Treasurys, widening the pool of onchain liquidity available for financing transactions. Read more

Tokenized US government debt used as collateral in leveraged trading exposes crypto markets to further geopolitical and liquidity risks. The growing use of yield-bearing tokenized US Treasury products as collateral for leveraged crypto trading creates new pathways for risk transmission across markets, increasing the likelihood of cascading effects on decentralized finance (DeFi) protocols. Tokenization is the process of converting real-world assets into digital tokens on a blockchain. In the case of US Treasurys, these tokens represent onchain claims to government debt, offering an alternative comparable to money market fund shares. The current market capitalization of tokenized US Treasurys stands at nearly $7.4 billion. According to a June report from rating service Moody’s, although short-term liquidity funds are low-risk assets, they are not riskless: Read more