Tokenization News – Tokenized U.S. Treasury funds have surged to $7.4 billion in assets in 2025, an 80% increase from 2024, led by BlackRock’s BUIDL, Franklin Templeton’s BENJI, and Ondo Finance’s OUSG.
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| Tokenized Treasury Funds Boom with $7.4 Billion in Assets |
Operating on blockchains like Ethereum and Polygon, these funds offer stable yields of 4–8%, attracting institutional and retail investors seeking alternatives to volatile stablecoins.
The boom in tokenized treasuries underscores their role in bridging traditional and decentralized finance, transforming fixed-income investments.
High Yields Drive Investor Interest
Tokenized Treasury funds deliver yields far exceeding traditional savings accounts, with BUIDL at $2.83 billion and BENJI at $753.8 million leading the market.
Blockchain’s 24/7 trading and instant settlement capabilities enhance accessibility, allowing investors to capitalize on stable returns.
Family offices and hedge funds are increasingly allocating capital to these funds, drawn by their low-risk profile and high yields compared to conventional options.
Integration with Decentralized Finance
Tokenized treasuries are finding new utility in decentralized finance protocols, where they serve as collateral for lending or staking.
Ondo Finance’s OUSG, for example, is integrated into DeFi platforms, enabling investors to maximize returns.
The use of scalable blockchains like Ethereum and Polygon ensures seamless transactions, driving adoption and expanding the role of tokenized treasuries in the broader DeFi ecosystem.
Institutional and Regulatory Support
Goldman Sachs and Citadel’s $135 million investment in the Canton Network highlights institutional enthusiasm for tokenized treasuries.
Regulatory frameworks, including the SEC’s oversight and the EU’s Markets in Crypto-Assets rules, provide clarity and reduce risks, encouraging broader adoption.
This support is positioning tokenized treasuries as a reliable, scalable option for institutional investors, with growth expected to continue into 2026.
