Tokenized US Treasury Market Gains More Than $1 Billion in the First Two Months of 2026
The on‑chain representation of U.S. government debt has crossed the $10.8 billion mark, expanding by roughly $2 billion since the start of the year despite a volatile macro‑economic backdrop.
Market growth
Data compiled by RWA.xyz shows the total value of tokenized U.S. Treasury securities rose from about $8.9 billion on 1 January to just over $10.8 billion at the time of writing. The increase—exceeding $1 billion in a little more than a month—continues a broader trend that began in 2024, when the segment exploded by a factor of 50, according to Token Terminal analytics.
A key catalyst has been BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), launched in March 2024. The fund, which issues a tokenized Treasury basket, now commands a market valuation above $1.2 billion and has drawn institutional capital seeking a blockchain‑based proxy for ultra‑safe assets.
Resilience amid broader market headwinds
The surge occurs against a backdrop of several challenges:
- Crypto‑market correction: A broad pull‑back that started in October 2025 has reduced total cryptocurrency market capitalization by roughly $1 trillion.
- Rising sovereign debt: The United States’ national debt has continued to climb, prompting debate over fiscal sustainability.
- Heightened macro uncertainty: The World Uncertainty Index, a composite gauge of global investor sentiment, posted record levels in 2025, reflecting concerns ranging from inflation to geopolitical risk.
Despite these factors, demand for tokenized Treasurys has remained robust. Market participants cite the assets’ intrinsic safety, deep liquidity, and the operational efficiencies afforded by blockchain settlement as reasons for their continued appeal.
Institutional infrastructure moves forward
In December 2025 the Depository Trust & Clearing Corporation (DTCC)—the world’s largest clearinghouse, which processed $3.7 quadrillion in transactions in 2024—announced plans to roll out a tokenization platform for U.S. Treasurys on the Canton blockchain. Chief Executive Frank La Salla indicated that this service will serve as a pilot for a broader suite of tokenizable instruments, including exchange‑traded funds and equities, once Treasury tokenization proves stable.
The DTCC’s entry signals a growing convergence between legacy financial infrastructure and decentralized ledger technology, potentially lowering friction for secondary‑market trading of tokenized assets and expanding the pool of participants able to interact with on‑chain securities.
Why tokenized Treasurys matter
- Liquidity bridge: Traditional Treasury markets are among the most liquid in the world; tokenization aims to replicate that liquidity on decentralized networks, enabling 24/7 trading and fractional ownership.
- Cash‑like exposure: Short‑duration Treasurys are frequently used by corporations and funds as a cash equivalent. Their tokenized counterparts can provide similar risk characteristics while allowing integration with smart contracts and DeFi protocols.
- Revenue streams for blockchain ecosystems: As the volume of tokenized government debt rises, the underlying blockchain platforms stand to collect higher fees from minting, settlement, and custody services.
Key takeaways
| Insight | Implication |
|---|---|
| $10.8 bn market cap – up from $8.9 bn at the start of 2026 | Demonstrates strong, incremental investor interest despite broader crypto downturns |
| 50× growth since 2024 – driven largely by BlackRock’s BUIDL fund | Institutional backing lends credibility and may accelerate further capital inflows |
| DTCC’s tokenization rollout – slated for early‑2026 | Traditional market‑infrastructure players are committing resources to on‑chain securities |
| Macro‑risk environment – high debt levels and global uncertainty | Tokenized Treasurys act as a “safe‑haven” asset class within the digital ecosystem |
| Potential network effects – increased activity on Ethereum L2s and other Layer‑2 solutions | Could boost transaction volume and fee revenue for blockchain operators that host Treasury tokens |
Outlook
Analysts expect the tokenized Treasury market to keep expanding as more financial institutions seek blockchain‑compatible exposure to sovereign debt. The combination of a proven, ultra‑low‑risk asset class with the efficiency gains of tokenization positions the sector to benefit from both traditional finance and decentralized finance ecosystems. However, sustained growth will likely hinge on regulatory clarity, the ability of infrastructure providers like DTCC to deliver secure and compliant tokenization services, and the broader health of the crypto market.
The information above reflects publicly available data and statements released by the referenced organizations. Readers are advised to conduct independent verification before making investment decisions.
Source: https://cointelegraph.com/news/tokenized-us-treasurys-rise-1b-2026?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
