Tokenized U.S. Treasuries Hit $30 Billion as TradFi Embraces On-Chain Yields
The market for tokenized U.S. Treasury products has grown 10x in 18 months, driven by BlackRock's BUIDL fund and new entrants from traditional finance.
Tokenized U.S. Treasury products have collectively surpassed $30 billion in total value locked, up from $3 billion at the start of 2025. BlackRock's BUIDL fund leads with $12 billion, followed by Franklin Templeton's BENJI token and Ondo Finance's USDY.
The growth reflects a broader trend of traditional finance embracing blockchain infrastructure for settlement and distribution. JPMorgan's Onyx division recently announced plans to tokenize $5 billion in money market fund shares on a private Ethereum rollup.
For DeFi, tokenized Treasuries have become foundational collateral. Protocols like MakerDAO, Aave, and Morpho now accept BUIDL tokens as collateral, creating a bridge between risk-free government yields and on-chain lending markets.
Larry Fink has described tokenization as "the next generation for markets," predicting that within five years, most financial assets will trade on blockchain infrastructure. Critics note that the current landscape remains fragmented, with assets split across Ethereum, Stellar, Avalanche, and private chains.
