Tokenization News – Tokenized U.S. Treasury funds have surged in 2025, reaching $7.4 billion in assets under management, driven by institutional backing from firms like BlackRock, Franklin Templeton, and Ondo Finance.
These funds, tokenized on blockchains like Ethereum, offer stable yields of 4–8%, attracting investors seeking low-risk alternatives to stablecoins.
With instant settlements and 24/7 trading, tokenized treasuries are reshaping fixed-income markets, gaining significant traction among hedge funds and family offices in a rapidly evolving financial landscape.
Tokenized Treasuries Attract Institutional Investors
BlackRock’s BUIDL ($2.83 billion) and Franklin Templeton’s BENJI ($753.8 million) lead the tokenized treasury market, offering yields far exceeding traditional savings accounts.
Institutional investors are drawn to the stability of U.S. Treasuries combined with blockchain’s efficiency, enabling seamless portfolio diversification.
The ability to trade tokenized treasuries around the clock enhances liquidity, making them a preferred choice for institutions navigating high interest rates in 2025.
Integration with Tokenized Assets in DeFi
Tokenized treasury funds are increasingly integrated with decentralized finance platforms, where they serve as collateral for lending or staking.
Ondo Finance’s OUSG, for instance, allows investors to leverage tokenized assets for higher yields. Ethereum and Polygon’s scalability ensures smooth transactions, broadening the appeal of tokenized treasuries.
This integration bridges traditional and decentralized finance, offering institutions new ways to maximize returns in a blockchain-driven market.
Regulatory Support for Tokenized Treasuries
Regulatory clarity from the SEC and EU’s MiCA framework has bolstered confidence in tokenized treasuries.
Institutions like Goldman Sachs are investing in blockchain infrastructure to support these funds, ensuring compliance with securities laws.
This regulatory backing, combined with institutional adoption, positions tokenized treasuries as a cornerstone of digital finance, with growth expected to accelerate as more firms enter the market in 2025.
