U.S. Treasuries
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U.S. Treasuries
crypto-reporter.com·Jul 21
UK bets on tokenization to reinforce London’s financial edge
The U.K. government has unveiled a strategic roadmap to establish the nation as a global leader in tokenized financial markets, projecting an additional £33 billion in annual economic output by 2035. Led by HM Treasury’s Chris Woolard and a task force of 54 major financial institutions, the initiative prioritizes the integration of distributed ledger technology into wholesale markets, specifically targeting government bonds, repo markets, and collateral management. The plan recommends the issuance of a digital gilt by early next year and the development of a regular issuance program to modernize capital market infrastructure. By shifting focus from speculative cryptocurrencies to institutional-grade assets, the U.K. aims to reduce settlement times and operational costs while securing £14 billion in new tax revenue over the next decade. Major global players including BlackRock, JPMorgan Chase, and Barclays are participating in this effort to ensure the U.K. remains competitive against jurisdictions like Singapore and the UAE. The report emphasizes that failing to execute this transition risks losing critical liquidity and international standard-setting influence to rival financial hubs. This move underscores a broader global trend where traditional finance increasingly adopts blockchain to enhance transparency and efficiency in the $88 trillion projected market for tokenized real-world assets.
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U.S. Treasuries
XRP Ledger Records Massive 8X Surge in Tokenized US Treasuries in One Year
The XRP Ledger (XRPL) has experienced a significant expansion in its tokenized U.S. Treasury market, growing from $50 million in April 2025 to $418.5 million by April 2026. This 8x increase highlights a shift in institutional preference toward the network for regulated financial products. Beyond mere issuance, the utility of these assets has surged, with transfer volumes reaching $352.3 million in just four months, compared to $70.1 million for the entirety of 2025. Major financial entities including Ondo Finance, OpenEden, Guggenheim, and Archax are driving this momentum through active product launches. Archax, an FCA-regulated exchange, has specifically committed to tokenizing up to $1 billion in real-world assets on the ledger by mid-2026. This trend indicates that tokenized Treasuries are transitioning from static holdings to active components of on-chain liquidity and collateral management. The rapid growth underscores the XRPL's evolving role as a critical infrastructure layer for institutional-grade, regulated financial markets.
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U.S. Treasuries
Tokenized Securities on Wall Street
Tokenized securities are transitioning from experimental pilots to core Wall Street infrastructure, focusing on U.S. Treasuries, money market funds, and settlement rails rather than speculative assets. Major financial institutions like BlackRock, Franklin Templeton, and J.P. Morgan are leveraging blockchain to improve operational efficiency, with Citi estimating the market reached 17 billion dollars by April 2026. The shift is driven by the need to solve fragmentation in traditional settlement, where shared ledgers can replace redundant recordkeeping by brokers and custodians. Regulatory progress is evident, with the SEC granting clearance for DTCC’s tokenization pilot and approving Nasdaq’s framework for tokenized Russell 1000 stocks. These issuer-backed tokens maintain identical legal rights to off-chain equivalents, ensuring compliance and investor protection. By enabling atomic settlement and faster collateral mobility, tokenization addresses systemic liquidity issues in cross-border and repo markets. As institutional adoption grows, the focus remains on integrating blockchain rails into existing regulated frameworks to reduce administrative drag and capital inefficiency.
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U.S. Treasuries
Tokenized markets reach $2.3B
The tokenized fund market has reached a record $2.3 billion in market capitalization, signaling a shift in institutional preference toward network utility over simple total value locked. While Ethereum remains the primary custody layer with $783.2 million in assets, Solana has emerged as the dominant venue for trading, processing 95%–97% of tokenized equity volume. This divergence highlights a growing trend where institutions separate custody functions from execution venues to prioritize settlement efficiency and low costs. Arbitrum currently leads in holder count with 12,500 wallets, followed by Solana with 8,200 and Sui with 6,000. These figures demonstrate that issuer reputation and distribution channels are becoming more critical than chain availability for attracting capital. The industry is moving away from passive liquidity metrics toward active measures like DEX volume and transaction activity. This evolution suggests that future blockchain competition will be defined by operational resilience and capital efficiency rather than just the volume of assets held on-chain.
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U.S. Treasuries
BNB Chain Becomes Largest Network for Franklin Templeton’s $1.5B BENJI Fund
Franklin Templeton has significantly expanded its $1.5 billion BENJI tokenized money market fund by integrating it onto the BNB Chain, which now serves as the fund's primary network. Data from RWA.xyz indicates that BNB Chain currently hosts approximately $1.5 billion in BENJI assets, accounting for 61.71% of the fund's total value after a 1,226% monthly increase. This strategic shift has relegated the Stellar network, the fund's original foundation, to second place with $583 million in assets, representing 23.76% of the total. Ethereum remains the third-largest host with $159.1 million, while Base, Arbitrum, and Avalanche hold smaller combined allocations. By adopting a multi-chain approach, Franklin Templeton aims to enhance investor accessibility through networks offering lower transaction costs and faster processing speeds. This development underscores a broader trend of major financial institutions transitioning from pilot projects to full-scale, multi-chain deployment of regulated financial products. The move highlights the intensifying competition among blockchain networks to capture liquidity from traditional asset managers seeking to modernize their distribution channels.
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U.S. Treasuries
Franklin Templeton's Tokenized Treasury Success Could Shift Institutional Investment Trends
Franklin Templeton has solidified its position as a leader in the tokenized treasury sector by achieving $1.6 billion in onchain assets under management growth as of July 2026. This significant milestone highlights a growing institutional appetite for digital assets despite broader market volatility and uncertainty. By integrating traditional financial products with blockchain technology, the firm is effectively bridging the gap between legacy finance and decentralized ecosystems. The success of this initiative is bolstered by strategic partnerships, such as the collaboration with Ondo Finance, and proactive filings for Bitcoin ETFs. These developments signal a potential paradigm shift in how major financial institutions approach digital asset integration and portfolio diversification. As Franklin Templeton continues to innovate, its robust framework for tokenized assets serves as a blueprint for other market participants to follow. This momentum is critical for the RWA market, as it demonstrates that institutional-grade products can thrive onchain, potentially setting a new industry standard for future investment strategies.
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SCRYPT Integrates Franklin Templeton’s BENJI for On-Chain Treasury
Swiss-regulated digital asset infrastructure provider SCRYPT has integrated Franklin Templeton’s BENJI platform to manage its internal corporate treasury using tokenized money market funds. By utilizing the FOBXX fund, which records share ownership on a public blockchain, SCRYPT gains access to 24/7 intraday liquidity that traditional banking infrastructure cannot provide. This integration addresses the critical gap between the round-the-clock nature of crypto markets and the T+1 settlement constraints of conventional financial systems. By deploying this solution on its own balance sheet first, SCRYPT is testing operational resilience and regulatory compliance before potentially offering the model to its institutional clients. This move highlights a growing trend where infrastructure providers leverage tokenized real-world assets to mitigate basis risk while maintaining yield on idle cash. The integration underscores the maturity of Franklin Templeton’s BENJI as a distribution mechanism for institutional investors seeking on-chain treasury management. Ultimately, this development signals a shift toward more sophisticated, blockchain-native treasury operations within the Swiss regulatory framework.
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U.S. Treasuries
Institutional Tokenization Trends 2026
Institutional tokenization is transitioning from theoretical pilots to production-grade enterprise adoption in 2026, with the broader tokenized asset market estimated to exceed 340 billion USD. Coinbase and EY-Parthenon report that 67 percent of institutions are prioritizing tokenization, focusing primarily on U.S. Treasuries, money market funds, and regulated stablecoin rails. Tokenized U.S. Treasuries have emerged as the leading category, reaching 9.6 billion USD with 120 percent year-over-year growth, exemplified by BlackRock's 1.7 billion USD BUIDL fund. Major infrastructure providers like the DTCC and Nasdaq are integrating tokenized settlement into existing regulated frameworks rather than replacing them. Regulatory developments, including the 2025 GENIUS Act and the 2026 CLARITY Act, are providing the necessary legal clarity for institutional participation. Despite this momentum, the industry faces significant operational hurdles, such as reference data mismatches and the need for interoperability between disparate blockchain platforms. Success in this sector now depends on building robust, permissioned infrastructure that prioritizes compliance, custody, and seamless integration with legacy ERP and banking systems.
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U.S. Treasuries
Tokenization Is Coming to Wall Street as J.P. Morgan Takes Another Step Toward Making Treasurys Move Like Crypto
J.P. Morgan is advancing the tokenization of financial assets by integrating its Onyx blockchain platform with traditional money market funds. The bank successfully utilized its Tokenized Collateral Network to facilitate the transfer of BlackRock money market fund shares as collateral in a transaction with Barclays. This development allows institutional investors to move high-quality assets across blockchain rails in near real-time, significantly reducing settlement times compared to traditional T+2 cycles. By enabling assets like U.S. Treasurys to function with the liquidity and programmability of crypto-assets, J.P. Morgan is addressing long-standing inefficiencies in collateral management. This shift signals a broader institutional adoption of distributed ledger technology to modernize the plumbing of global capital markets. The ability to automate collateral movements reduces operational friction and capital lock-up, providing a more efficient framework for liquidity management. As major financial institutions continue to bridge the gap between legacy systems and blockchain, the RWA sector gains increased legitimacy and infrastructure scalability.
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U.S. Treasuries
Tokenized Money Market Funds could transform how companies manage cash, says Franklin Crypto CIO
Franklin Templeton's Crypto CIO Roger Bayston highlights the transformative potential of tokenized money market funds for corporate treasury management. By utilizing blockchain technology, these funds offer enhanced liquidity and operational efficiency compared to traditional financial instruments. The Franklin OnChain U.S. Government Money Fund (FOBXX) serves as a primary example, having already integrated blockchain rails to provide investors with transparent, real-time tracking of assets. This shift allows companies to manage cash reserves with greater precision while reducing the friction associated with legacy settlement systems. As institutional interest grows, the ability to programmatically interact with tokenized assets is becoming a critical differentiator for financial service providers. The integration of these funds into broader decentralized finance ecosystems signals a maturation of the RWA sector. Ultimately, this evolution suggests that tokenization will become a standard component of institutional capital management, bridging the gap between traditional finance and digital asset infrastructure.
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BlackRock’s BUIDL Hits $1B in Tokenized Fund Assets as Regulatory Questions Mount
BlackRock’s BUIDL tokenized money market fund has reached $1 billion in assets, signaling rapid institutional adoption of blockchain-based financial products. The fund functions as a hybrid, offering the stable value of a stablecoin alongside the yield-generating characteristics of a traditional bond fund. Despite its growth, the product faces significant scrutiny due to its ambiguous legal classification and lack of public disclosure regarding underlying ownership rights. Because BUIDL does not fit neatly into existing regulatory frameworks, it creates a transparency gap that complicates oversight for both investors and authorities. As the world’s largest asset manager, BlackRock’s approach to these regulatory questions will likely set a precedent for the broader tokenized real-world asset market. The current trend of wrapping traditional financial instruments into tokens promises increased efficiency, yet the speed of adoption is currently outpacing established disclosure standards. Ultimately, the industry must reconcile these innovative structures with traditional compliance norms to ensure long-term stability as more capital flows into the ecosystem.
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U.S. Treasuries
CFTC collateral rule change could boost tokenized MMF
The Commodity Futures Trading Commission (CFTC) has finalized a rule change allowing a broader range of money market funds (MMFs) to serve as initial margin for uncleared swaps. Previously, MMFs utilizing reverse repo, repo, or securities lending were excluded from collateral eligibility, despite these instruments being standard for government MMFs under SEC Rule 2a-7. By removing these restrictions, the CFTC acknowledges the low-risk nature of reverse repo transactions, which involve lending cash against government securities. This shift is significant for the RWA market because it directly facilitates the use of tokenized MMFs as collateral in the massive OTC derivatives sector. With US MMF participation in Treasury repo transactions reaching approximately $1.7 trillion as of October 2025, the potential for tokenized assets to capture this liquidity is substantial. The Commission notably declined to impose additional caps or clearing requirements on these repo activities, providing a clear regulatory path for adoption. This development marks a critical step in integrating tokenized financial products into the institutional margin ecosystem, though cleared margin eligibility remains a separate regulatory hurdle.
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U.S. Treasuries
BNB News Today: BNB Chain Adds $2.8B in Tokenized T-Bill AUM
BNB Chain has emerged as the leader in tokenized U.S. Treasury bill growth, recording a $2.8 billion increase in assets under management year-to-date. This expansion highlights a significant divergence in the RWA market, as other networks like Aptos and zkSync Era experienced net outflows during the same period. The growth is attributed to BNB Chain's strategic focus on low transaction fees, high-speed finality, and a dedicated incentive program for RWA issuers. Institutional adoption has been bolstered by the integration of major products such as BlackRock's BUIDL, VanEck's VBILL, and Franklin Templeton's Benji platform. Furthermore, the network's compliance-first approach, featuring integrated KYC and monitoring tools from partners like Chainalysis, has provided the necessary infrastructure for large-scale institutional participation. Regulatory alignment in jurisdictions like Abu Dhabi and Hong Kong has further solidified the chain's position as a preferred venue for tokenized money market funds. This shift underscores the broader industry trend where the total market for digitized Treasury bills has surged from $701 million in early 2024 to over $16.3 billion by mid-2026.
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JPMorgan On-Chain Securities Settlement Trial
JPMorgan has transitioned on-chain securities settlement from experimental labs to live production environments through its Onyx and Kinexys platforms. By integrating BlackRock money market funds, Ondo Finance tokenized Treasuries, and Chainlink messaging, the bank is successfully executing delivery-versus-payment (DvP) transactions across hybrid private and public blockchain networks. This milestone addresses critical institutional pain points, specifically the operational friction and counterparty risk inherent in traditional collateral management and cross-border settlement. By enabling tokenized shares to serve as collateral for OTC derivatives, JPMorgan is demonstrating how programmable inventory can optimize liquidity and reduce settlement times. The trials prove that banks can maintain regulated cash settlement on private ledgers while interacting with public-chain assets through secure, compliant messaging layers. This shift toward interoperable, multi-chain infrastructure signals a move away from isolated silos toward a more integrated global financial system. Ultimately, these developments represent a significant evolution in financial market infrastructure, prioritizing the synchronization of asset and cash legs to mitigate systemic risk.
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U.S. Treasuries
Franklin Templeton leads tokenized treasuries with over 100% YTD growth in its BENJI fund
Franklin Templeton’s BENJI tokenized money market fund, representing the Franklin OnChain US Government Money Fund (FOBXX), has surpassed $2.5 billion in assets under management. Launched on the Stellar blockchain in 2021, the fund serves as a pioneer for US-registered mutual funds utilizing public distributed ledger technology for record-keeping. Beyond passive holdings, the fund recorded over $211 million in cumulative peer-to-peer transfer volume by March 2026, signaling active on-chain utility. The firm is aggressively expanding its ecosystem through a partnership with DigiFT for Asian market access and an integration with MoonPay Trade for institutional stablecoin swaps. Furthermore, a landmark on-chain Treasury transaction executed via Tradeweb on the Canton Network in July 2026 highlights the growing institutional adoption of blockchain for fixed-income trading. While the fund remains a small fraction of Franklin Templeton’s $1.74 trillion total assets, its rapid growth trajectory underscores the increasing viability of tokenized government debt. This expansion demonstrates a shift toward integrating traditional financial infrastructure with blockchain-based settlement systems.
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What are tokenized money market funds?
Tokenized money market funds have emerged as the fastest-growing real-world asset category, surging from near zero to over $15 billion in two years. Major financial institutions including BlackRock, JPMorgan, Franklin Templeton, and Circle have launched these products to provide yield on idle capital, a feature traditional stablecoins lack. Unlike stablecoins, which are designed as settlement assets, these funds are regulated securities that distribute interest generated from underlying short-term Treasury bills and cash. The transition to blockchain infrastructure allows for near-instant settlement and continuous operation, replacing traditional T+1 or T+2 cycles. Crucially, these tokens function as digital receipts for shares recorded in an off-chain transfer agent register, meaning the blockchain acts as a mirror of legal ownership rather than the primary source of truth. Compliance is maintained through permissioned systems, requiring KYC and wallet allow-listing to restrict peer-to-peer trading. This evolution is now converging with stablecoin markets, as funds like BlackRock’s BUIDL and JPMorgan’s JLTXX are increasingly utilized as reserve assets for stablecoin issuers.
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Securitize's Kobayashi Warns Japan Risks 'Losing' Without a ¥300 Trillion RWA Market【WebX 2026】
At the WebX 2026 conference, industry leaders from Securitize Japan, BlackRock, and Franklin Templeton discussed the urgent need for Japan to scale its RWA market to ¥300 trillion by 2033 to maintain global competitiveness. Eiichi Kobayashi of Securitize Japan warned that Japan's current public blockchain market is effectively zero, risking a significant loss of international standing as the global RWA sector approaches a projected ¥3,000 trillion. The panel highlighted the evolution of tokenized money market funds (MMFs), such as BlackRock's BUIDL and Franklin Templeton's BENJI, which offer 24/7/365 transferability and DeFi integration. Mitsunori Yuasa of Franklin Templeton demonstrated the practical utility of these assets by citing their recent use in a corporate M&A settlement. Despite these global advancements, panelists noted that domestic demand in Japan remains limited, with major securities firms struggling to identify corporate use cases. The discussion emphasized that transitioning from regulatory frameworks to active, real-world use cases is the critical challenge for Japan. Ultimately, the ability of Japanese institutions to adopt these blockchain-based financial products will determine the nation's trajectory in the rapidly expanding global RWA landscape.
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HSBC is first company to get Bank of England regulatory approval to go live in the Digital Securities Sandbox
HSBC Bank Plc has secured approval from the Bank of England to become the first participant in the UK’s Digital Securities Sandbox (DSS). This regulatory milestone allows HSBC Orion, the bank's proprietary digital assets platform, to function as a Digital Securities Depository for the issuance, servicing, and settlement of digitally native bonds. The initiative specifically supports the upcoming DIGIT, or digital gilt instrument, alongside corporate bond offerings. By operating within this live regulatory environment, HSBC aims to advance the integration of distributed ledger technology into mainstream financial market infrastructure. The move follows the Chancellor of the Exchequer's announcement regarding the inaugural DIGIT pilot issuance scheduled for early next year. With over US$5 billion in digital bond issuances already facilitated globally, HSBC Orion is positioning itself as a central player in the UK's digital asset evolution. This development is significant for the RWA market as it signals a shift toward formalizing digital securities within established national regulatory frameworks.