Tokenized Treasuries Surpass $5B as Demand for RWAs Surges
The market capitalization of tokenized U.S. Treasuries has crossed the $5 billion threshold for the first time, signaling a growing appetite for blockchain-based real-world assets (RWAs), according to data from rwa.xyz.
The sector has expanded by $1 billion in just two weeks, driven by significant inflows into leading tokenized Treasury funds, including BlackRock’s and Securitize’s BUIDL.
Tokenized U.S. Treasury products are at the forefront of the asset tokenization movement, attracting major financial institutions and digital asset firms alike. Fidelity Investments is among the latest traditional finance giants exploring this space, recently filing to launch the Fidelity Treasury Digital Liquidity fund on the Ethereum blockchain.
“Tokenization has the potential to revolutionize financial services by streamlining transactions and improving capital allocation across markets,” said Cynthia Lo Bessette, head of Fidelity Digital Asset Management, in a statement to CoinDesk.
Tokenized Treasuries serve as a blockchain-based alternative to traditional money market funds, allowing investors to earn yield on idle cash while also being utilized as reserve assets in decentralized finance (DeFi) protocols. Another emerging application is their use as collateral in trading and asset management.
“Using tokenized assets as non-cash collateral for margin requirements could enhance capital efficiency and strengthen financial infrastructure,” Bessette added.
Her insights align with those of Donna Milrod, Chief Product Officer at State Street, who previously noted that tokenized collateral could have mitigated the “liability-driven” crisis of 2022 by enabling pension funds and asset managers to meet margin calls without liquidating holdings.
Growth Expected to Continue
The expansion of tokenized Treasuries is showing no signs of slowing down. Securitize reported that BUIDL is on pace to exceed $2 billion in assets by early April, up from its current $1.7 billion. Additionally, Spark—an ecosystem partner of DAI stablecoin issuer Sky (formerly MakerDAO)—plans to allocate $1 billion across BUIDL, Superstate’s USTB, and Centrifuge’s fund, which is co-managed with Anemoy and Janus Henderson.
As institutional adoption accelerates, tokenized Treasuries are solidifying their role as a transformative force in both traditional and decentralized finance.
