The tokenized market for U.S. government securities has surpassed $8.7 billion in assets under management, according to recent data from RWA.xyz. This continued growth showcases the increasing adoption of blockchain technology within traditional finance (TradFi) to offer digital exposure to reliable sovereign debt. 📈
The total value has grown by nearly 1.8% over the past seven days, and the number of participants in this market has surged to over 57,900, representing an increase of more than 6%. ⬆️
This asset class digitizes ownership of U.S. government bonds and money market funds across various blockchains.
It provides a regulated, yield-bearing product accessible within the digital asset ecosystem. The seven-day average yield (APY) for these products is around 3.72%.
Market Dominance
The market is currently dominated by established financial institutions such as Securitize, which holds approximately 33.5% of the market share. These institutional players are driving substantial growth, with Securitize’s market value exceeding $2.92 billion and BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) accounting for nearly $2.83 billion.
Other notable protocols in this market include Ondo with a market cap of approximately $1.47 billion, Circle whose single treasury product has reached over $948 million in value, and Franklin Templeton and WisdomTree who now hold over $852 million and $642 million, respectively.
Bridging the Gap
The tokenization of government securities represents a bridge between traditional finance (TradFi) and decentralized finance (DeFi). This shift provides tangible advantages like transparent on-chain ownership, faster settlement times, and access to stable, low-risk yield without leaving the blockchain.
The market’s consistent growth from exceeding $100 million in mid-2023, surpassing $1 billion shortly after, to now hitting $8.7 billion underscores robust investor interest.
This continued momentum indicates that both crypto-native and traditional investors see tokenized treasuries as an indispensable product for portfolios, integrating the stability of sovereign debt into the evolving landscape of finance.