Tokenised Treasuries Top US $10 B: BlackRock and Franklin Turn a Talking Point into a Market
Khushi V Rangdhol Jul 17, 2025 07:03
Tokenized Treasuries have topped $10 billion, led by BlackRock and Franklin Templeton, offering risk-free yields and 24/7 trading, with growth expected to $20 billion soon.
When the first “on‑chain” Treasury note appeared three years ago, most investors dismissed the tokenised‑asset pitch as conference‑booth bravado. They are not laughing now. Data from the RWA.xyz dashboard show Treasury‑backed tokens—essentially blockchain wrappers around conventional money‑market funds—passing US $10 billion in value locked during the last week of June, a three‑fold jump in twelve months. The surge makes this corner of real‑world‑asset (RWA) finance larger than the entire global stable‑coin sector was in 2019.
How Two Wall‑Street Names Grabbed 60 % of The Pie
BlackRock’s USD Institutional Digital Liquidity Fund—ticker BUIDL—sits on roughly US $2.9 billion, all represented by ERC‑1400 tokens that accrue daily yield directly to wallets. Franklin Templeton’s OnChain U.S. Government Money Fund, launched on Stellar and later mirrored on Polygon, has crossed US $1.6 billion. Together they control well over half of today’s tokenised‑Treasury float, with crypto‑native Ondo Finance in a distant third after bridging US $700 million worth of its OUSG tokens to the XRP Ledger.
Institutional appetite comes down to three factors. First, a five‑percent–plus risk‑free yield is hard to ignore when it can now be moved at blockchain speed, twenty‑four hours a day. Second, fractional token lots—as small as US $100—let treasurers park idle cash without waiting for next‑day NAV batches. Finally, DeFi venues such as Crypto.com’s lending desk are accepting BUIDL as collateral, which means an investor can both earn yield and post margin with the same asset.
What a “Tokenised T‑bill” Really Is
No‑one is placing Treasury certificates directly on Ethereum or Stellar. Instead, fund shares remain in traditional custody at J. P. Morgan or BNY Mellon; the transfer agent mints or burns a matching blockchain token. Smart contracts handle shareholder records, automate interest accrual and, crucially, allow investors to trade outside Wall Street’s 9:30–16:00 window. It is the same money‑market fund you might buy through a broker, only delivered in crypto‑native form.
Regulators have so far taken a “qualified investors only” stance. Tokens change hands on SEC‑registered alternative trading systems in the United States, while Luxembourg granted Franklin a UCITS‑style approval in February—the first time a European fund regulator blessed full‑token issuance.
Roadblocks Before US $20 Billion
The Runway to US $20 Billion
If monthly inflows merely halve from the past year’s pace, tokenised‑Treasury products would still breach US $20 billion by early 2026. That forecast assumes no wholesale CBDC; should the Federal Reserve or the Bank of England green‑light a sandbox for cash‑on‑ledger settlement, growth could accelerate. Meanwhile, Hong Kong and Brazil are each drafting rules to let primary sovereign bonds settle directly on blockchain. As those pipes open, today’s money‑market use case could expand to longer‑dated green bonds and even commodity paper.
For yield hunters and corporate treasurers alike, the headline is no longer hypothetical: the safest short‑term debt in the world has already moved on‑chain, and the migration is gathering speed. Those waiting for a “regulatory OK” might note that BlackRock and Franklin, two of the most compliance‑driven managers on earth, have already decided the risk‑reward equation tips firmly toward tokenisation.
Sources: RWA.xyz Treasury dashboard; BlackRock press release, 20 Mar 2025; Franklin Templeton BENJI fact sheet, 28 Jun 2025; CoinDesk RWA Tracker, 01 Jul 2025; Crypto.com Lending FAQ, accessed 17 Jul 2025; European Securities and Markets Authority statement on tokenised UCITS pilot, 15 Feb 2025.
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