Tokenization: How Blockchain is Bringing Traditional Assets On-Chain
U.S. Treasuries
The tokenization of real-world assets has transitioned from an experimental phase to a significant institutional strategy, with the broader market expanding from approximately USD 2 billion in March 2024 to over USD 38 billion. Major financial institutions including BlackRock, JPMorgan, and Franklin Templeton are increasingly utilizing public blockchain infrastructure to issue funds and government debt. BlackRock’s BUIDL fund has emerged as a key player, managing over USD 2.6 billion and enabling qualified investors to utilize tokenized assets as programmable collateral. This shift allows for 24/7 settlement and increased capital efficiency by bypassing traditional, fragmented clearing systems. Data indicates that deposits of tokenized assets into decentralized finance platforms grew to USD 7.4 billion between Q2 2025 and Q2 2026. Ethereum remains the dominant network for these assets with USD 17.4 billion on Layer 1, while Solana is gaining traction with USD 3.73 billion in RWA value. Ultimately, this evolution aims to transform regulated financial instruments into programmable assets that function seamlessly across interconnected global markets.
Key points
- ▸Tokenized U.S. Treasuries grew from USD 721 million to approximately USD 16 billion.
- ▸BlackRock's BUIDL fund manages over USD 2.6 billion in tokenized assets.
- ▸Ethereum hosts USD 17.4 billion in RWA, while Solana reached USD 3.73 billion.
- ▸Deposits of tokenized assets into DeFi platforms reached USD 7.4 billion by Q2 2026.
Background
Tokenization involves creating digital representations of traditional financial assets like bonds, funds, or real estate on a blockchain. This process uses smart contracts to automate ownership transfers, dividend distributions, and compliance checks. By moving these assets on-chain, institutions aim to reduce settlement times and enable fractional ownership of high-value instruments.
Relevance
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