The market for tokenized US Treasurys has grown by more than $1 billion since the start of 2026, even as investors worry about the economy and rising US government debt.
Tokenized US Treasurys are government bonds that are turned into digital tokens and issued on blockchain networks. They allow investors to hold and trade US government debt in digital form.
At the beginning of January, the market was worth about $8.9 billion. It has since climbed to more than $10.8 billion, according to data from RWA.xyz.
The sector has expanded rapidly over the past two years. Data from Token Terminal shows the market has grown roughly 50 times since 2024. One major boost came in March 2024, when asset management giant BlackRock launched its USD Institutional Digital Liquidity Fund (BUIDL). The fund now has a market value of more than $1.2 billion.
The growth in tokenized Treasurys has continued despite a broader slowdown in crypto markets that began in late 2025. During that time, digital asset prices fell sharply, and investor uncertainty increased. Measures of global economic uncertainty also reached record highs in 2025, according to data from the Federal Reserve Bank of St. Louis.
In December 2025, the Depository Trust and Clearing Corporation (DTCC) announced plans to launch its own tokenization service, starting with US Treasurys. DTCC CEO Frank La Salla said the company expects to expand the service later to include exchange-traded funds (ETFs) and stocks.
DTCC is the world’s largest financial market clearinghouse and processed $3.7 quadrillion in transactions in 2024.
US Treasurys are widely seen as one of the safest and most liquid financial assets in the world. Many companies and large investors use short-term Treasurys, which mature in one year or less, as a cash alternative.
Supporters of tokenization say putting government bonds on blockchain networks could lower costs, increase access, and generate new revenue for the platforms that host these digital assets.
Featured image from: x.com