Tokenized US Treasurys have become one of the most rapidly expanding areas within the real-world asset market, with figures indicating roughly fiftyfold growth in under two years as institutions increasingly seek blockchain-based yield opportunities.

According to data from Token Terminal, the total market capitalization of tokenized US Treasury products climbed from well below $200 million in January 2024 to nearly $7 billion by late 2025. This sharp rise highlights the speed at which government-backed debt instruments are being adopted onchain.

A major driver of this expansion is BlackRock’s USD Institutional Digital Liquidity Fund, commonly viewed as the leading product in the tokenized Treasury space. The blockchain-native fund offers exposure to short-term US Treasurys with daily yield accrual and onchain settlement, and industry figures show it has gathered close to $2 billion in assets under management.

Other notable products include Circle’s USD Coin Yield, Superstate’s US Treasury Bill Token, and Ondo Finance’s Ondo Short-Term US Government Bond Fund. Together, these offerings illustrate a broader effort to migrate traditional fixed-income products onto blockchain infrastructure through regulated fund structures.

Institutional gateways into onchain finance

US Treasury bills are increasingly seen as a natural fit for tokenization, combining the perceived safety of sovereign-backed debt with the operational efficiency of blockchain settlement. This mix has positioned tokenized T-bills as a regulated entry point into decentralized finance for institutional participants.

Institutional use cases are expanding beyond simple investment exposure. Tokenized Treasurys are being used for settlement, margining and collateral management, allowing firms to improve capital efficiency while maintaining access to low-risk assets. Large financial institutions have begun experimenting with these structures as part of broader digital asset strategies.

DBS, Southeast Asia’s largest bank by assets, has been among the early movers, piloting tokenized funds that include blockchain-based Treasury products. These initiatives form part of its wider exploration of onchain assets for settlement and collateral purposes.

Tokenization market broadens beyond Treasurys

The rise of tokenized Treasury bills has coincided with growth across other segments of the onchain asset landscape, contributing to the rapid evolution of the wider tokenization market. Alongside government debt, private credit has emerged as the fastest-growing category, supported by yields that often exceed those available in traditional markets.

Together, these trends point to increasing institutional comfort with blockchain-based representations of real-world assets, as tokenization expands from niche experimentation into a more established component of modern financial infrastructure.

Sources:

https://cointelegraph.com/news/tokenized-us-treasurys-surge-50x-since-2024-onchain-finance

https://x.com/tokenterminal/status/2003096211583311913