Tokenized Treasuries Surge Past $5B as Institutions Embrace Blockchain

The market value of tokenized U.S. Treasuries has surpassed $5 billion for the first time, according to data from rwa.xyz, marking a major milestone for blockchain-based real-world assets (RWAs). This surge, driven by growing institutional interest, saw the sector gain $1 billion in just two weeks.

Leading this growth is BUIDL, a tokenized U.S. Treasury fund launched by BlackRock and Securitize. The fund currently holds $1.7 billion in assets and is projected to exceed $2 billion by early April. The tokenization trend continues to gain traction as major financial players, including Fidelity and State Street, explore blockchain-based solutions for greater capital efficiency and transparency.

Fidelity recently filed to launch the Fidelity Treasury Digital Liquidity fund on Ethereum, signaling strong confidence in blockchain infrastructure. “Tokenization can transform financial services by improving capital access and operational efficiency,” said Cynthia Lo Bessette, head of Fidelity Digital Asset Management.

Tokenized Treasuries offer investors yield on idle capital while acting as a powerful reserve asset in DeFi protocols. They're also gaining popularity as collateral for trading and margin requirements. According to State Street's Donna Milrod, such collateral tokens could have helped prevent crises like the 2022 liability-driven investment meltdown by avoiding forced liquidations.

The momentum doesn’t stop here. Spark, partner of stablecoin issuer Sky (formerly MakerDAO), plans to allocate $1 billion to top tokenized Treasury products including BUIDL, Superstate’s USTB, and Centrifuge’s fund managed with Anemoy and Janus Henderson.

As blockchain adoption accelerates, tokenized Treasuries are quickly becoming a core element of modern finance, bridging traditional and digital markets while offering increased efficiency, yield, and flexibility.