Tokenised US Treasuries on Ethereum hit a record $8bn
U.S. Treasuries
The market for tokenized U.S. Treasuries on Ethereum has reached an all-time high of $8 billion, marking a 100% increase over the past six months. Key growth drivers include prominent offerings such as BlackRock's BUIDL, Franklin Templeton's iBENJI, and Ondo Finance's USDY. Beyond market cap growth, JPMorgan and Mastercard successfully executed the first cross-border redemption of a tokenized Treasury fund using the XRP Ledger. This pilot demonstrated real-time settlement between public blockchain infrastructure and traditional banking rails. Despite these milestones, Pantera Capital reports that the broader $31.1 billion tokenized asset market remains in an early stage, with most projects merely replicating traditional models rather than utilizing blockchain-native features like programmability. Only 10.6% of assets currently offer meaningful DeFi composability, highlighting a significant gap between current digital facsimiles and fully autonomous on-chain finance. While Kraken's Arjun Sethi notes that tokenized equities are gaining traction in emerging markets, he cautions that institutional adoption by major U.S. banks will be a gradual process rather than an overnight transformation.
Key points
- ▸Tokenized U.S. Treasuries on Ethereum hit $8 billion, doubling in six months.
- ▸JPMorgan and Mastercard completed the first cross-border tokenized Treasury fund redemption on XRP Ledger.
- ▸Pantera Capital reports 91.1% of tokenized assets still rely on closed issuance models.
- ▸Total tokenized asset market capitalization reached $31.1 billion across 524 digitized assets.
Background
Tokenized U.S. Treasuries represent government debt obligations issued on a blockchain, allowing investors to hold yield-bearing assets in digital wallet form. These products typically function by wrapping traditional securities into tokens, enabling fractional ownership and potentially faster settlement compared to legacy financial systems.
Relevance
8.5/10