The bond market is going through a difficult phase, a situation also acknowledged by the US Treasury, which will intervene with new purchases of longer-term maturities. Meanwhile, an alternative source of demand is growing at a pace unmatched by any other buyer of public debt today. US Treasuries in tokenized form—represented as tokens on a blockchain—are meanwhile approaching the symbolic threshold of $40 billion.
Tokenized Treasuries Race Toward $40 Billion
Tokenization of government bonds involves representing a real-world bond with a token that circulates on a blockchain. According to the rwa.xyz dashboard, the distributed value of the RWA sector amounts to $38.07 billion. The figure includes government bonds, private credit, commodities, and equities, all brought onto the blockchain in token form.
Growth stands at +1.28% over the past 30 days, and the $40 billion threshold remains within reach. The strongest figure, however, concerns holders, which have risen to 2,284,550 addresses, a jump of +72.54% in a single month. Capital is growing more slowly, while the number of people entering the market is increasing at a pace never seen before.
Treasuries Dominate While Europe Looks On
Tokenized US Treasuries alone are worth $16.19 billion, representing more than 42% of the entire sector. All other government debt worldwide brought on-chain amounts to just $1.25 billion. Non-US government debt has fallen by -8.90% over 30 days and -17.73% year over year.
The distrust currently weighing on French OATs, as well as on BTPs and Bunds, is therefore also reflected on the blockchain. We discussed this today in the article dedicated to the US Treasury’s Treasury buyback. This snapshot shows that on-chain capital is buying short-term US debt while completely ignoring European government bonds. Brussels bears some responsibility here, particularly because of the MiCA regulation.
Who Issues the Tokens and Which Networks They Use
The top end of the tokenized Treasury market appears more crowded today than ever before. Circle leads with $3 billion and an 18.44% share, closely followed by Securitize at 18.29%.
Next come Ondo with $2.6 billion and Franklin Templeton with $2.5 billion; four operators control nearly 70% of the market. Securitize, which issues BlackRock’s BUIDL fund, is up +8.70% over 30 days and is preparing to overtake its rival. Superstate is performing even better, with a gain of +9.80%, while Circle has advanced just +0.67% and is losing market share.
As for the networks, the chart above shows Ethereum in first place, hosting $7.2 billion. BNB Chain is a surprise second with $4.8 billion. Solana and Stellar complete the picture of the main networks, with $1.2 billion each.
Money Market Fund Yield, but On-Chain
The engine driving this demand is the yield, which currently stands at an average annual 3.45%. The benchmark is SOFR at 3.63%, the overnight rate at which US banks lend money to one another. The difference between the two values represents the product’s cost—in other words, the fees charged by the structure issuing the token. These tokenized instruments yield as much as a money market fund, but exist on-chain and move within seconds. They can also be used as collateral in DeFi protocols, an advantage traditional funds do not offer. However, they should not be confused with crypto assets, because they are not traded 24 hours a day, seven days a week. The fund’s value is updated only on business days, and redemptions follow traditional market hours.
