The market capitalization of tokenized U.S. Treasury bonds has officially surpassed the $10 billion mark, signaling the consolidation of blockchain technology within traditional capital markets.
In January 2026, these digital instruments represent the fastest-growing segment of the real-world assets (RWA) ecosystem, having doubled in value compared to the previous year.
This expansion is primarily driven by sustained demand for dollar-denominated yields and operational efficiency gains related to on-chain settlement.
Unlike traditional brokerage accounts, tokenized Treasury products allow for 24/7 liquidity and instant mobility of collateral, attracting corporate treasurers and institutional fund managers seeking higher-quality cash alternatives.
The rise of 'programmable cash'
Tokenized Treasuries serve as a bridge between high-yield debt markets and the decentralized finance (DeFi) ecosystem.
Institutional giants like BlackRock and Franklin Templeton are leading the sector, with BlackRock's BUIDL fund alone exceeding $2.4 billion in assets under management.
These assets allow investors to earn state-backed returns while retaining the utility of a digital token.
By directly integrating yield-generating bonds into smart contracts, platforms like Ondo Finance (ONDO) enable users to use Treasuries as collateral for loans or as a hedge against more volatile crypto assets.
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Structural shift towards tokenization
The $10 billion mark reflects a broader trend toward 'compliance by design' as U.S. and European regulators finalize frameworks for digital securities.
Ethereum (ETH) remains the dominant network for these issuances, hosting about 65% of the total market, followed by Stellar (XLM) and Solana (SOL).
Market analysts estimate that this growth trajectory could bring the RWA market to $2 trillion by 2030.
Although tokenized Treasuries currently represent only a fraction of the $30 trillion in public debt outstanding, their rapid rise suggests a shift toward a unified ledger for digital and traditional finance.
Also read: GameStop Transfers $421 Million In Bitcoin To Coinbase Amid Deep Treasury Losses
