The tokenized U.S. Treasuries market continues to expand rapidly, with BlackRock’s BUIDL fund maintaining a commanding 33% market share, according to data from RWA.xyz. However, competitors including Franklin Templeton, Circle, and Ondo Finance are accelerating growth, suggesting that the sector may be entering a new phase of diversification.
Market Overview
BlackRock’s $2.85 billion BUIDL fund remains the clear leader in the tokenized Treasury market, reflecting institutional confidence in the asset manager’s on-chain strategy. But data shows that other issuers are quickly closing the gap.
- Circle now holds $866.6 million in tokenized Treasuries, a 19.5% increase over the last 30 days.
- Franklin Templeton follows closely with $852.2 million, rising nearly 18.8% in the same period.
- Ondo Finance’s combined products, Ondo I and Ondo USDY, collectively manage nearly $1.48 billion, further underscoring growing institutional adoption.
Rounding out the top 10 are WisdomTree, Superstate, Anemoy, Fidelity Investments, and Treasury Bills Ltd, showing that both traditional financial institutions and crypto-native firms are now actively competing in this market segment.
Access Remains Restricted
Despite impressive growth, access to tokenized Treasuries remains largely limited. Only Qualified Purchasers are typically eligible to invest directly, and secondary markets face structural barriers such as:
- Haircuts of up to 10% when tokenized Treasuries are used as collateral, compared to around 2% in traditional repo markets.
- Redemption delays that adhere to legacy settlement cycles, reducing the real-time efficiency tokenization promises.
These factors currently make tokenized Treasuries less flexible than their traditional counterparts, though proponents argue that as infrastructure matures, these inefficiencies will narrow.
The Bigger Picture
The tokenization of real-world assets (RWAs), particularly U.S. Treasuries, is widely regarded as one of the most promising applications of blockchain technology. Global demand for yield-bearing, on-chain instruments has surged throughout 2025, as institutions seek transparent and programmable fixed-income alternatives.
As on-chain Treasury markets approach $9 billion in total capitalization, analysts expect broader access and regulatory clarity to trigger the next wave of growth, potentially positioning RWAs as a new standard for digital asset-backed liquidity.