Key Takeaway:
- Onchain tokens representing short-dated U.S. Treasurys via money market fund shares.
- Stablecoin-like transactions, but backed by securities under distinct legal frameworks.
- Rising Treasury yields and programmability drove 2024 onchain adoption past $1B.
Tokenized U.S. Treasurys are onchain representations of short‑dated U.S. government debt, often structured as tokenized shares of money market funds that hold Treasury bills. Transactions are recorded on a digital ledger, making them operationally similar to stablecoins while being backed by underlying securities with distinct legal structures.
This year’s increase reflects yield and infrastructure dynamics. As Treasury yields outpaced non‑yielding stablecoins, investors sought onchain access to government debt with 24/7 settlement and programmability. The shift was visible as early as 2024, when CoinDesk reported, citing 21.co strategist Tom Wan, that tokenized Treasurys on public blockchains had crossed $1 billion, signaling growing preference for yield‑bearing tokens over cash‑like alternatives.
Momentum and milestones are accumulating across RWA tokenization. Based on data from CoinShares, the U.S. Treasurys segment rose from roughly $3.91 billion at the start of 2025 to about $8.68 billion toward year‑end, leading growth within tokenized RWAs. The firm also noted that, when yields are favorable, investors often prefer holding Treasurys over non‑yielding stablecoins. These figures frame the rapid adoption narrative and help explain headlines about TVL approaching the $10 billion mark by late 2025 and accelerating into 2026.
Institutional participation underpins credibility. BlackRock BUIDL has become a flagship example alongside established custody and know‑your‑customer rails that differentiate these instruments from bearer‑style stablecoins. The focus on investor eligibility, asset segregation, and clear servicing aims to align onchain issuance with securities norms.
“Massive milestone for tokenization. We’ve been saying it. Everything that can be tokenized will be. RWAs are coming onchain fast. The rails are being built. Adoption is next,” said Mike Novogratz, CEO of Galaxy Digital, following BlackRock BUIDL’s AUM milestone.
Two measurement concepts guide coverage. TVL refers to the onchain value of circulating tokens; AUM reflects the underlying fund assets. Regulatory considerations, especially KYC, custody, and jurisdictional disclosures, remain central, and outcomes will depend on issuer structures and evolving oversight. At the time of this writing, BlackRock, Inc. (BLK) traded near $1,087.08, up about 0.56% intraday; this market context is descriptive and not an investment view.
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