Tokenized US Treasurys 50x when institutions increase production on chain

Tokenized US Treasurys have emerged as one of the fastest growing segments of the real world asset (RWA) market, with data showing 50x growth in two years.

According to data from Token Terminal, the combined market capitalization of Token US Treasury products has exploded from less than $200 million in January 2024 to over $7 billion by the end of 2025. The development highlights the rapid increase in onchain adoption for government-backed debt instruments.

At the center of this expansion is BlackRock's US Dollar Institutional Digital Liquidity Fund (BUIDL), which is the flagship product of the broader tokenized treasury market.

The blockchain-based fund offers investors short-term US Treasury exposure and daily yield accrual and onchain payment. According to industry data, BUIDL has accumulated nearly $2 billion in assets under management.

Other popular offerings include the US Dollar Coin Yield (USYC) from Circle, the US Treasury Bill Token (USTB) from SuperState and the Ondo Short-Term US Government Bond Fund (OUSG) from Ondo Finance.

Each product offers tokenized access to U.S. government debt in regulated fund structures, reflecting a broader push to bring traditional fixed income instruments on the blockchain rail.

Related: Goldman Sachs, BNY to offer tokenized money market fund to clients

Tokenized treasury bills emerge as a key gateway to institutional DeFi

US Treasury bills are particularly well-suited for tokenization as they combine the security of US government backing with a blockchain-based settlement system to create a streamlined entry into decentralized finance (DeFi) markets.

As Cointelegraph reports, institutional tokenized treasury bills are gaining acceptance, especially for use in settlement and margin. Traditional financial institutions are using securitized government debt to improve capital efficiency while maintaining exposure to low-risk assets.

DBS, the largest financial institution in Southeast Asia, is among the first lenders to test tokenized funds, including blockchain-based treasury products. The bank has also experimented with money market funds and government securities as part of broader efforts to use onchain assets for collateral management and settlement.

Tokenized treasury bills have grown along with other onchain assets, contributing to the rapid growth of the tokenization market. RedStone data shows that personal loans are the fastest-growing segment, with yields exceeding traditional investment vehicles.

Related: New Protocol Targets Redemption Delays in $20B Tokenized Market