tl;dr
Blockchain-based US Treasury tokenization is rapidly growing, nearing a $6 billion market value, up over 43% since January. Ethereum leads as the primary blockchain, hosting $4.3 billion of tokenized Treasuries. BlackRock’s BUIDL fund dominates this space with $2.47 billion in assets, a 92% increase...
Blockchain-based US Treasury tokenization is undergoing rapid expansion, reaching a market value of nearly $6 billion, a rise of over 43% since January. Ethereum stands as the leading blockchain, hosting $4.3 billion worth of tokenized Treasuries, followed by Stellar and Solana with $474 million and $273 million respectively.
BlackRock’s USD Institutional Digital Liquidity Fund, known as BUIDL, dominates this landscape with $2.47 billion in assets, commanding 42% of the total market. Impressively, BUIDL’s value surged 92% in the last month alone. The fund’s tokens are backed one-to-one by the US dollar and yield daily dividends derived from short-term US Treasury assets, functioning similarly to stablecoins but with yield potential akin to traditional Treasuries.
Most of BUIDL’s assets—approximately 91%—reside on Ethereum, totaling about $2.3 billion, with the remainder distributed across newer blockchains and Ethereum Layer-2 networks, including Arbitrum, Polygon, Optimism, Aptos, and Avalanche, each hosting tens of millions in value.
This sweeping institutional adoption signals a broader embrace of tokenized real-world assets (RWAs) in the finance sector. Alongside BlackRock, firms like Franklin Templeton, with a $706 million tokenized fund, and Fidelity, which is preparing to launch “OnChain,” a blockchain-based Treasury money market fund, are actively entering the space.
Overall, tokenized US Treasuries are carving a transformative path by merging traditional fixed-income markets with blockchain technology—offering investors enhanced liquidity, transparency, and accessibility while reaffirming the growing convergence of traditional finance with decentralized ecosystems.