Tokenized U.S. Treasuries Smash $10 Billion Barrier as Institutional Money Floods In
Wall Street's digital awakening just hit a major milestone—tokenized U.S. Treasuries have officially crossed the $10 billion total value mark. Forget slow-moving legacy systems; this isn't just growth, it's an institutional stampede onto the blockchain.
The Yield Hunt Goes On-Chain
Why are blue-chip firms suddenly cozying up to crypto rails? It's not about the tech buzz—it's about cold, hard efficiency. Tokenization slashes settlement times from days to minutes, unlocks 24/7 markets, and creates programmable yield engines. Traditional finance is finally admitting the old plumbing is leaking.
From Niche to Mainstream in Record Time
The climb to $10 billion wasn't a slow burn. It was a vertical ascent fueled by a simple realization: you can now get U.S. Treasury exposure without the traditional custody headaches and operational friction. The 'safe' asset just got a serious tech upgrade.
A New Financial Blueprint Emerges
This isn't just about digitizing bonds. It's about building a new financial layer where everything—from bonds to real estate—is tradable, composable, and transparent. The infrastructure forming today will underpin the next decade of capital markets.
Of course, watching traditional finance embrace the very technology it spent years dismissing is its own kind of poetic justice—turns out even the most stubborn bankers can't ignore a better balance sheet. The $10 billion record isn't a ceiling; it's the new foundation. The race to tokenize the world's assets has officially left the starting gate.
Tokenized U.S. Treasuries lead growth across networks
Tokenized U.S. Treasuries are digital representations of U.S. government debt, an asset that has long supported the contemporary economy. The money invested by an institution or, less frequently, an individual purchasing a tokenized U.S. Treasury is subsequently used to buy actual U.S. Treasury notes or short-term loans backed by Treasuries. In exchange, the investor receives a token that yields.
According to the latest treasury product metrics, Circle USYC from Circle International was the most popular tokenized U.S. Treasury product, with a $1.69 billion market capitalization and a 7-day annual percentage yield of 3.01%. Ondo U.S. Dollar Yield (USDY) owned $1.20 billion, and BlackRock USD Institutional Digital Liquidity Fund (BUIDL) held $1.68 billion.
Franklin OnChain U.S. Government Money Fund (BENJI), at $892 million, and ONDO Short-Term US Government Bond Fund (OUSG), at $733 million, were two other noteworthy products.
According to market cap by network, most tokenized U.S. Treasury products (and similar digital assets) were held in Ethereum, totaling around $5.6 billion. BNB Chain followed with $2.1 billion, while Stellar took third place with $698.7 million. Solana, Aptos, and Avalanche C-Chain held $510.8 million, $331.3 million, $238.4 million, respectively. Arbitrum held the lowest with $199.1 million.
Regarding net flows, over the last 30 days, Ondo’s USDY led with $567 million, followed by Centrifuge’s JTRSY with $240 million. Franklin’s BENJI and Spiko’s USTBL earned $71 million and $51 million, respectively, while Circle’s USYC contributed $164 million.
Tokenized treasuries drive blockchain access for diverse investors
Tokenized U.S. Treasury instruments continue to draw significant attention from institutional and high-net-worth investors, but their high minimum investment requirements and screening procedures remain a challenge. BlackRock’s BUIDL, for example, has a $5 million minimum investment requirement, which reflects its focus on institutional investors.
Other products similarly maintain eligibility requirements to guarantee participation by qualified buyers. On the other hand, some products, such as Ondo’s USDY, which currently has over 17,000 individual holders, target retail investors, especially those outside the United States.
According to Arkham Intelligence research, these products offer several key advantages to holders, including the ability to be exchanged and redeemed 24/7, since they are on-chain. The U.S. government and reputable investment management companies such as BlackRock also back them. Additionally, they can be used as collateral in DeFi.
These features, however, are making tokenized U.S. Treasuries more popular, which appeals to both institutional and individual investors. Building on this trend, investment giant BlackRock has identified tokenization and cryptocurrency as the “themes driving markets” in 2026.
In the 2026 Thematic Outlook, BlackRock pointed out that tokenization, or the digital representation of real-world assets like stocks and real estate, is gaining traction.
According to the investment firm, this shift is part of a change in how investors access markets. An early example of a tokenized asset is a stablecoin, such as one backed by the U.S. dollar.
“In our view, as tokenization continues to rise, so will the opportunity to access assets beyond cash and U.S. Treasuries via the blockchain,” the report stated. It specifically mentioned the ethereum blockchain as a potential beneficiary of tokenization expansion, given its widespread use in developing decentralized apps and token infrastructure.
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