Tokenized U.S. Securities: Bridging Traditional Finance and DeFi for Global Access

The financial landscape is undergoing a seismic shift as tokenized U.S. securities emerge as a transformative asset class. By 2025, the market has already tokenized over $1.5 billion in U.S. government-backed assets, with platforms like Franklin Templeton’s BENJI and BlackRock’s BUIDL leading the charge. These innovations are not just digitizing assets—they are redefining liquidity, accessibility, and global market participation.

Market Growth and Institutional Adoption

The tokenization of U.S. securities has accelerated due to institutional adoption and regulatory clarity. BlackRock’s BUIDL fund, for instance, surpassed $2 billion in assets under management (AUM) within a year, demonstrating robust demand for tokenized money market funds [2]. Similarly, Franklin Templeton’s tokenized U.S. government money funds hold $360 million, while WisdomTree expanded its offerings to 13 SEC-registered tokenized mutual funds [2].

The Asset Tokenization Platforms Market, valued at $1.76 billion in 2025, is projected to grow at a 14.55% CAGR, reaching $5.98 billion by 2034 [4]. This growth is driven by the efficiency of tokenized assets: faster settlement times, 24/7 liquidity, and reduced transaction costs. For example, tokenized U.S. Treasuries now enable real-time collateralization in derivatives trading, a feature previously unattainable in traditional markets [4].

DeFi Integration: Bridging Compliance and Decentralization

DeFi’s integration with tokenized U.S. securities is unlocking new frontiers. Franklin Templeton’s Franklin OnChain U.S. Government Money Fund (FOBXX) has amassed $760 million in assets by enabling peer-to-peer transfers and DeFi collateralization [1]. Meanwhile, Ondo Finance tokenizes U.S. Treasury bills for use in DeFi protocols, allowing investors to generate yield through lending and staking [2].

MakerDAO’s RWA Vaults further illustrate this synergy, using real-world assets like real estate and invoices as collateral to mint DAI, a decentralized stablecoin [5]. Hashnote USYC, another innovator, offers a token backed by U.S. Treasury yields, combining blockchain transparency with traditional low-volatility returns [5]. These platforms are not merely digitizing assets—they are creating interoperable financial ecosystems.

Strategic Global Access and Fractional Ownership

Tokenized securities are democratizing access to high-value assets. Fractional ownership of real estate, commodities, and government securities now allows retail and institutional investors to bypass high entry barriers. By 2035, Deloitte predicts $4 trillion in real estate will be tokenized, with platforms enabling instant settlement and 24/7 trading [3]. Tokenized U.S. Treasuries, in particular, offer a stable, liquid alternative to traditional fixed-income markets [1].

The tokenization market as a whole is projected to grow from $3.9 billion in 2025 to $18.8 billion by 2034, driven by regulatory clarity and increased liquidity [2]. For instance, the SEC’s “Project Crypto” initiative has modernized securities laws, clarifying that tokenized assets remain subject to federal regulations while fostering innovation [1]. This balance between compliance and decentralization is critical for global adoption.

Regulatory Clarity and the Road Ahead

Regulatory frameworks are pivotal in legitimizing tokenized assets. The SEC’s recent approval of in-kind creations and redemptions for crypto ETPs has enhanced market efficiency, while President Trump’s executive order to position the U.S. as the “crypto capital of the world” underscores policy support [1]. Internationally, the EU’s MiCA framework and Singapore’s clear regulatory guidelines are further accelerating institutional adoption [6].

However, challenges remain. Infrastructure for secondary trading and cross-chain interoperability must evolve to support seamless DeFi integration. Standards like ERC-3643 and ERC-4626 are critical for ensuring tokenized assets function across platforms [5].

Conclusion

Tokenized U.S. securities represent a paradigm shift in finance, merging the efficiency of blockchain with the stability of traditional assets. As institutional players and DeFi protocols collaborate, the barriers between centralized and decentralized finance are dissolving. For investors, this means unprecedented access to global markets, fractionalized assets, and yield-generating opportunities. The future of finance is not just digital—it’s tokenized.

Source:
[1] US Crypto Policy Tracker Regulatory Developments [https://www.lw.com/en/us-crypto-policy-tracker/regulatory-developments]
[2] Tokenized Funds Are Winning Flows – But Is the Plumbing Ready? [https://dacfp.com/tokenized-funds-are-winning-flows-but-is-the-plumbing-ready/]
[3] Tokenized real estate | Deloitte Insights [https://www.deloitte.com/us/en/insights/industry/financial-services/financial-services-industry-predictions/2025/tokenized-real-estate.html]
[4] Asset Tokenization Platforms Market Trends | Report [2034] [https://www.industryresearch.biz/market-reports/asset-tokenization-platforms-market-102743]
[5] The Second Wave of Stocks Tokenization: A Quantitative ... [https://www.linkedin.com/pulse/second-wave-stocks-tokenization-quantitative-analysis-carlo-gervasi-m265f]
[6] Top 5 Trends in Real-World Asset Tokenization for 2025 [https://medium.com/predict/top-5-trends-in-real-world-asset-tokenization-for-2025-5e8ff21e0204]