The market for tokenized US Treasurys has expanded by more than $1 billion since the start of 2026, even as macroeconomic concerns and rising US national debt continue to weigh on investor sentiment.

Tokenized US Treasurys represent government debt instruments structured as real-world assets and issued on blockchain networks in tokenized form. These digital representations allow traditional financial instruments to exist and circulate onchain while maintaining exposure to underlying Treasury securities.

Market capitalization for tokenized Treasurys increased from $8.9 billion at the beginning of the year to over $10.8 billion at the time of writing, based on data from RWA.xyz. The sector has experienced rapid acceleration, expanding roughly fiftyfold since 2024, according to Token Terminal. A significant catalyst behind this growth was the March 2024 launch of asset manager BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), which has since surpassed $1.2 billion in market value.

Growth has persisted even during a broader cryptocurrency market downturn that began in October 2025, alongside elevated government debt levels and continued uncertainty surrounding the global macroeconomic outlook for 2026. Investor sentiment indicators, including the World Uncertainty Index, reached record highs in 2025, underscoring the challenging economic backdrop against which tokenized Treasury adoption has continued.

Institutional infrastructure moves toward tokenization

In December 2025, the Depository Trust and Clearing Corporation (DTCC), a key provider of clearing and settlement infrastructure for global financial markets, revealed plans to introduce a tokenization service starting with US Treasurys. The initiative signals increasing institutional commitment to blockchain-based financial infrastructure.

DTCC CEO Frank La Salla indicated that the platform is expected to broaden beyond government debt instruments. “Following the tokenization of US Treasurys on the Canton network, DTCC anticipates that exchange-traded funds (ETFs) and equities will come shortly thereafter,” La Salla said.

As the world’s largest clearinghouse, DTCC processed approximately $3.7 quadrillion in transaction volume in 2024, highlighting the potential scale tokenization could reach if integrated into existing financial market plumbing.

Why Treasurys remain central to tokenization growth

US Treasurys serve as a foundational component of global financial markets due to their deep liquidity and widespread acceptance. Institutional investors and corporations frequently rely on short-term Treasury instruments, typically with maturities of one year or less, as a cash-equivalent reserve.

Supporters of tokenization argue that the growing issuance of tokenized government debt may generate additional revenue streams for blockchain networks hosting these assets, as increased onchain activity drives transaction fees and ecosystem participation.

Sources:

https://www.dtcc.com/news/2025/april/23/dtcc-processes-record-volumes-across-services-amid-market-volatility

https://cointelegraph.com/news/tokenized-us-treasurys-rise-1b-2026

https://fred.stlouisfed.org/series/WUIGLOBALWEIGHTAVG

https://app.rwa.xyz/treasuries