Across the on-chain securitization landscape, tokenized US Treasuries are gaining traction as a growing liquidity layer for traditional debt markets. The market for tokenized U.S. government securities has climbed by more than $1 billion since the start of 2026, even as macroeconomic headwinds persist and concerns about rising national debt linger. By the time of writing, the total value of tokenized Treasuries hovered around $10.8 billion, up from roughly $8.9 billion on January 1, according to data tracked by RWA.xyz. The move reflects a broader push toward on-chain representations of real-world assets, catalyzed by institutional participation and new infrastructure that aims to streamline on-chain settlement and custody for government debt.
The tokenized US Treasury market is framed as a real-world asset (RWA) on the blockchain, where each token represents a claim on a pro-rata slice of underlying government securities. This model promises faster settlement, programmable features, and easier cross-border access for investors who want exposure to highly liquid, benchmark-grade debt. The growth is not only about the asset class itself; it signals a sea change in how traditional fixed income can be accessed through digital rails. In a space characterized by volatility, the demand for ultra-liquid, widely recognized collateral has brought a new degree of stability to the on-chain finance ecosystem. In parallel, data from Token Terminal shows the market’s ascent accelerating, with the asset class described as having surged 50x since 2024, underscoring the scale of uptake among on-chain market participants.
Notably, the march of tokenized Treasuries has been bolstered by significant, real-world institutional backing. March 2024 marked the debut of BlackRock’s USD Institutional Digital Liquidity Fund, commonly referred to as BUIDL, a vehicle designed to bring high-grade liquidity into the digital-asset domain. As of now, BUIDL has extended its footprint to a market cap exceeding $1.2 billion, illustrating how traditional asset managers are applying digital liquidity concepts to convert cash-like assets into tokenized forms that can reside on-chain while preserving regulatory guardrails and oversight. That development highlights the growing willingness of large asset managers to participate in tokenized markets, even as broader crypto markets faced a downturn in late 2025 and early 2026.
Infrastructure and policy developments have kept pace with these market dynamics. In December 2025, the Depository Trust & Clearing Corporation (DTCC), the leading clearinghouse network for global markets, announced plans to launch an asset-tokenization service beginning with US Treasuries. The initiative, described as a Canton-based effort, aims to tokenize a broad spectrum of assets over time, with the first focus on Treasurys. DTCC’s leadership indicated that the service would eventually extend to exchange-traded funds (ETFs) and equities, signaling a broader push to bring regulated, on-chain settlement and post-trade processing to a wider array of asset classes. The DTCC footprint is substantial: the firm settled hundreds of trillions in value across its networks in 2024, underscoring the potential leverage such a platform could wield in terms of liquidity and risk management for tokenized assets.
Beyond the tokenization service, the macro environment remains a factor shaping demand for tokenized government debt. The tokenized Treasuries narrative has persisted even as the crypto market faced a broad downturn that began in October 2025. Observers point to macro uncertainty, rising US debt levels, and a cautious risk sentiment as a backdrop for the adoption of tokenized RWAs. The World Uncertainty Index, tracked by the Federal Reserve Bank of St. Louis, remained elevated through 2025, signaling a demand for liquid, highly credit-rated collateral that can function as a reliable settlement layer in volatile conditions. In this context, tokenized Treasuries—backed by the same cash-like liquidity that underpins traditional money markets—offer an appealing on-chain alternative for institutions seeking efficient liquidity and programmable exposure with robust risk controls.
Industry participants argue that tokenization could unlock new revenue streams for the networks and platforms that mint these assets. By enabling the on-chain representation of US government debt, the market opens opportunities for liquidity providers, market makers, and custody rails to monetize settlement and settlement-related services in a regulated, tokenized framework. Proponents also point to a broader trend where traditional finance is exploring Layer-2 and sidechain solutions to tokenize trillions in RWAs, a narrative that has gained traction in industry discussions and related reporting. While the pace of adoption may vary by jurisdiction and regulatory posture, the underlying demand for asset-backed tokens with deep liquidity remains palpable, potentially shaping how institutions think about cash equivalents in a digital era.
The Depository Trust and Clearing Corporation to launch US Treasury tokenization service
DTCC’s decision to initiate asset tokenization on the Canton network marks a pivotal step in bridging regulated markets with blockchain-enabled post-trade workflows. The project, announced in December 2025, intends to tokenize US Treasuries first, leveraging the Canton pilot to test settlement, custody, and compliance controls in a tokenized environment. While the immediate focus is Treasuries, DTCC’s leadership has signaled that the platform will broaden to a wider range of asset classes, potentially including ETFs and equities as part of a phased expansion plan. This move aligns with a broader industry push to bring regulated, on-chain settlement capabilities to traditional asset classes, reducing settlement risk and enabling programmable liquidity features for high-quality collateral.
DTCC’s scale and reach—settling trillions in transactions across its networks—underscore the potential for tokenization to affect the entire market infrastructure. The firm’s ecosystem is designed to support complex multi-party processes, and the Canton-based exchange of tokenized assets could similarly improve efficiency, transparency, and risk management for on-chain representations of debt and other financial instruments. As tokenized Treasuries begin to circulate on Canton and related rails, observers will be watching for interoperability standards, custody guarantees, and regulatory alignment that will determine how quickly tokenized assets gain broader adoption across institutions and asset managers.
US Treasuries have long been the backbone of global and corporate finance due to their liquidity and accessibility. With tokenization, the traditional cash-like role of short-dated Treasuries could gain an additional dimension—programmable features, automated redemption and settlement workflows, and potential yield enhancements through structured products built atop tokenized debt. Yet as with any regulatory-adjacent innovation, the path to scale hinges on clear guidance, standardized protocols, and robust risk controls that can reassure both market participants and policymakers alike. Still, the momentum around tokenized RWAs—driven by market data, institutional participation, and infrastructure bets—suggests that the coming years could witness a more visible integration of on-chain representations into mainstream fixed-income trading and settlement.
Why it matters
For investors, tokenized Treasuries offer a familiar, highly liquid exposure channel that can be integrated into digital portfolios with programmable features and potential cost efficiencies in settlement. The on-chain representation of US government debt could enable new liquidity strategies, cross-border access, and more seamless movement of capital between traditional and crypto-native ecosystems.
For networks and platforms, the scale of the market cap growth signals an opportunity to monetize settlement and custody services, while supporting risk-managed access to high-grade collateral. The DTCC’s tokenization initiative illustrates how regulated infrastructure can serve as a bridge between conventional markets and blockchain-based mechanics, potentially driving further adoption across asset classes beyond Treasuries.
From a policy and regulatory perspective, tokenization raises important questions about custody, compliance, and reporting. As more assets move on-chain, regulators will scrutinize how on-chain representations are reconciled with traditional clearing, settlement, and risk-management frameworks. The ongoing collaboration between traditional financial institutions and blockchain-native firms will be essential to establishing algorithms and standards that can sustain growth without compromising resilience.
Summed up, the tokenization of US Treasuries reflects a broader trend toward institutional embrace of RWAs and on-chain settlement. It is a development that could recalibrate the economics of liquidity provision in digital markets while reinforcing the role of trusted incumbents—like DTCC—in shaping the governance and reliability of tokenized asset ecosystems. The narrative remains nuanced: there is clear momentum and significant capital behind this shift, but it will require careful navigation of regulatory landscapes and interoperability challenges to translate early wins into durable, scalable liquidity for tokenized debt.
What to watch next
- Timeline and milestones for DTCC’s Canton-based US Treasuries tokenization rollout, including any regulatory approvals.
- Expansion plans to ETFs and equities on the tokenization platform and the pace of experimentation with additional asset classes.
- Adoption metrics from institutional participants and observable liquidity improvements in tokenized Treasuries.
- Regulatory developments or policy clarifications impacting on-chain RWAs and regulated tokenization structures.
Sources & verification
- RWA.xyz data on tokenized Treasuries and market cap levels (https://app.rwa.xyz/treasuries).
- Token Terminal data indicating a 50x surge since 2024 for tokenized Treasuries (https://x.com/tokenterminal/status/2003096211583311913).
- BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and its current market position (https://cointelegraph.com/news/blackrock-buidl-3x-1-8-b-3-weeks-bitcoin-lacks-momentum).
- DTCC announcements regarding Canton-network-based asset tokenization and planned expansion (https://cointelegraph.com/news/dtcc-tokenize-us-treasurys-canton-blockchain).
- Federal Reserve Bank of St. Louis’ World Uncertainty Index as a contextual gauge for market sentiment (https://fred.stlouisfed.org/series/WUIGLOBALWEIGHTAVG).