Only 0.4% of Tokenized U.S. Treasury Bill Fund Value Was in DeFi on Oct. 7
RWA Signal Insight
U.S. TreasuriesThe tokenized fund market experienced significant growth, reaching a total market capitalization of $35.1 billion as of October 7, 2026, compared to $3 billion on October 9, 2023. Despite this rapid expansion, the integration of these assets into decentralized finance remains uneven across different product categories. While 8.9% of the total tokenized fund market value is currently deposited in DeFi protocols, U.S. Treasury bill funds show a notably lower adoption rate, with only $58.6 million—or 0.4% of their $13.9 billion market value—utilized in DeFi. Treasury bill funds emerged as the largest category by market value in April 2026, yet they contribute minimally to DeFi liquidity compared to other sectors. Yield strategies and credit funds dominate the DeFi landscape, accounting for 98% of all tokenized fund deposits within the ecosystem. This data highlights a clear divergence between the assets that hold the most on-chain market value and those that are actively leveraged within decentralized financial applications. Understanding these utilization patterns is essential for assessing the maturity and utility of the broader RWA market as it scales.
Key points
- Tokenized fund market cap grew from $3 billion in 2023 to $35.1 billion in 2026.
- U.S. Treasury bill funds reached $13.9 billion in market value by October 2026.
- Only 0.4% of U.S. Treasury bill fund value is currently deposited in DeFi protocols.
- Yield strategies and credit funds represent 98% of all tokenized fund deposits in DeFi.
Background
Tokenized funds represent traditional financial assets, such as government bonds or private credit, that have been issued as digital tokens on a blockchain. These tokens allow investors to gain exposure to real-world yields while benefiting from the transparency, fractional ownership, and potential for 24/7 settlement provided by distributed ledger technology. By bridging traditional finance with DeFi, these assets aim to increase capital efficiency and liquidity for institutional and retail investors.