Tokenized U.S. Treasuries Surpass $5B as Institutional Adoption Gains Momentum
The market for tokenized U.S. Treasuries has officially crossed the $5 billion mark, highlighting the rapid expansion of blockchain-based real-world assets (RWAs), according to data from rwa.xyz.
This growth has been fueled by a $1 billion surge in just two weeks, with BlackRock’s BUIDL fund and Securitize leading the sector. Institutional players are increasingly recognizing the potential of tokenized assets, with Fidelity Investments recently filing for regulatory approval to launch its Fidelity Treasury Digital Liquidity Fund on Ethereum.
“Tokenization has the potential to revolutionize financial markets by streamlining capital flows and enhancing liquidity,” said Cynthia Lo Bessette, head of Fidelity Digital Asset Management.
Tokenized Treasuries serve multiple purposes: they provide investors with a blockchain-based yield-bearing alternative to money market funds, act as a reserve asset for decentralized finance (DeFi) protocols, and could soon play a key role in institutional collateral management.
“Using tokenized Treasuries as non-cash collateral for margin requirements could improve capital efficiency and make financial operations more resilient,” Bessette added.
Institutional Demand Driving Further Expansion
The momentum behind tokenized treasuries shows no signs of slowing down. Securitize expects its BUIDL fund to exceed $2 billion in assets by early April, while Spark—the ecosystem partner of stablecoin issuer Sky (formerly MakerDAO)—plans to deploy $1 billion across BUIDL, Superstate’s USTB, and Centrifuge’s Anemoy-Janus Henderson fund.
As more traditional financial institutions explore tokenization, the sector is poised for significant growth, reshaping how institutional capital is deployed and managed on-chain.
