The digital asset landscape has reached a significant milestone as the total value locked (TVL) in tokenized U.S. Treasuries officially surpassed $10 billion. This surge represents a massive shift in onchain financial infrastructure, signaling that traditional financial instruments are rapidly migrating toward blockchain-based rails. The growth is largely fueled by institutional appetite for low-risk, yield-bearing assets that can be utilized within the decentralized finance (DeFi) ecosystem.
Major financial heavyweights are driving this expansion. BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and Franklin Templeton’s Benji Investments have emerged as dominant players, capturing a significant portion of the market share. These products allow institutional investors to earn federal interest rates while maintaining the instant settlement advantages and transparency inherent to blockchain technology. By wrapping sovereign debt in digital tokens, these firms are bridging the gap between legacy capital markets and the 24/7 liquidity of crypto markets.
The implications of reaching the $10 billion mark are profound for the broader Real-World Asset (RWA) sector. As high interest rates persist in the United States, the demand for onchain versions of 'risk-free' assets provides a stable foundation for DeFi protocols that previously relied on volatile crypto-native yields. This infrastructure allows for more complex financial maneuvers, such as using tokenized debt as collateral for loans or as a stable store of value during market turbulence.
Looking ahead, the success of tokenized Treasuries is expected to catalyze the tokenization of other asset classes, including private equity, real estate, and corporate bonds. Regulatory clarity remains a focal point as this sector grows, but the current trajectory suggests that onchain finance is no longer a niche experiment. It is becoming a core component of global institutional strategy, fundamentally altering how liquidity is managed across the international financial system.