Tokenized US Treasuries surge as blockchain finance adoption accelerates

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Yaroslav Dmytrenko

22.12.2025

Tokenized US Treasuries surge as blockchain finance adoption accelerates — BlackRock BUIDL leads rapid growth of tokenized treasury market

Tokenized U.S. Treasury bonds have become one of the fastest-growing segments of the real-world assets (RWA) market, showing a 50-fold increase in less than two years, signaling a broader shift toward blockchain-based finance.

According to Token Terminal data, since early 2024 the combined market capitalization of tokenized U.S. treasury products has surged from under $200 million to nearly $7 billion by the end of 2025. This growth highlights the rapid acceleration of blockchain adoption for government debt instruments.

Market cap for tokenized U.S. Treasuries. Source: Token Terminal

As reported by Cointelegraph, at the center of this expansion is BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), considered the flagship product of the tokenized treasury market.This blockchain-based fund provides investors with access to short-term U.S. Treasury securities, offering daily yield accrual and on-chain settlement. BUIDL has already accumulated approximately $2 billion in assets under management.

Other notable offerings include Circle’s USD Coin Yield (USYC), Superstate’s US Treasury Bill Token (USTB), and Ondo Finance’s Ondo Short-Term US Government Bond Fund (OUSG).

From experiments to mainstream adoption

Each of these products offers tokenized access to U.S. government bonds through regulated fund structures, reflecting a broader push to move traditional fixed-income instruments onto blockchain platforms.

U.S. Treasury bills are particularly well suited for tokenization, combining the security of U.S. government backing with the efficiency of blockchain settlement, creating a regulated channel into decentralized finance (DeFi) markets.

Traditional financial institutions are using tokenized government bonds to improve capital efficiency while maintaining exposure to low-risk assets.

DBS, Southeast Asia’s largest financial institution by assets, was among the first major lenders to test tokenized funds, including blockchain-based treasury products. The bank conducted pilot programs using tokenized money market and government securities funds as part of broader efforts to leverage blockchain-based assets for collateral management and settlement.

Tokenized treasury bills have evolved alongside other blockchain-based assets, contributing to the rapid development of the tokenization market. Data from RedStone shows that the private credit segment is currently the fastest-growing, driven by yields exceeding those of traditional investment instruments.

As we wrote, Ethereum leads RWA sector with $4.1B in assets, zkSync trails at $1.95B

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