Tokenized Treasuries Hit $8.7B as Regulators and RWA Rivals Close In

The market for tokenized U.S. Treasuries has surged past $8.73 billion in assets under management, signaling a maturing intersection between traditional finance (TradFi) and blockchain technology, according to a CryptoTimes report. This growth, driven by institutional adoption and yield-seeking investors, has attracted major players like Securitize, BlackRock, and Franklin Templeton, while also sparking regulatory scrutiny and competition from broader real-world asset (RWA) tokenization initiatives.

The tokenized treasury market, which digitizes ownership of U.S. government bonds and money market funds, now boasts over 57,900 holders—a 6% increase in seven days, per the CryptoTimes report. Securitize leads with a 33.5% market share, supported by BlackRock's BUIDL fund, which accounts for nearly $2.83 billion. Ondo and Circle also hold significant positions, with Ondo recently integrating Chainlink's CCIP to enhance interoperability. Franklin Templeton and WisdomTree's entries further validate the sector, as institutional investors seek stable, yield-bearing assets amid crypto's volatility.

However, the market faces friction. Tokenized treasuries remain limited to Qualified Purchasers under U.S. securities law, excluding retail investors, and operate on restricted redemption schedules, behaving more like traditional funds than 24/7 crypto assets, according to Cointelegraph research. Exchanges like Deribit apply 10% margin discounts due to liquidity concerns, highlighting operational risks such as delayed settlements and secondary-market inefficiencies noted in that report. Regulatory clarity remains elusive, with the U.S. CFTC's Tokenized Collateral and Stablecoins Initiative and Hong Kong's tightened oversight signaling a cautious global approach, as covered in a Yahoo Finance article.

Beyond treasuries, the RWA tokenization landscape is diversifying. Khabib Nurmagomedov's gyms, tokenized via Mavryk blockchain, were highlighted by U.Today, and Classover Holdings' partnership with Paimon Finance to tokenize education assets was described in a StockTitan report. Meanwhile, Brag House Holdings' merger with House of Doge aims to create a financial infrastructure giant leveraging Dogecoin's ecosystem for payments, asset management, and RWA tokenization, according to a StockTitan announcement. These moves underscore RWAs' potential to bridge physical and digital value systems, though execution risks—such as regulatory compliance and technical integration—remain critical hurdles noted in the StockTitan coverage.

Market observers note that tokenized treasuries' appeal lies in their ability to combine TradFi's stability with blockchain's efficiency. With a seven-day average yield of 3.72% reported by CryptoTimes, they offer a compelling alternative to cash management tools amid high treasury yields. Yet, scalability depends on resolving infrastructure gaps, such as cross-chain interoperability and standardized settlement protocols. The recent ISO 20022 integration by Swift and Chainlink, enabling seamless communication between banks and blockchains, marks progress toward mainstream adoption noted by Cointelegraph.

As the market evolves, competition is intensifying. While tokenized treasuries dominate, new RWA projects—from sports franchises to education infrastructure—are vying for a slice of the growing pie. The coming quarters will test whether these innovations can replicate the institutional trust and liquidity seen in treasury tokenization. For now, the sector's trajectory suggests that RWAs are no longer a niche experiment but a foundational pillar of the digital finance ecosystem, as argued in an Investing.com analysis.