Tokenized Treasuries Bridge Traditional and Digital Finance Realms

BlackRock's tokenized U.S. Treasury fund (BUIDL) has become the latest milestone in the convergence of traditional finance and blockchain, as it is now accepted as collateral for institutional trading on Binance and expands to the BNB Chain. The move, announced Friday by BlackRock and Binance, allows traders to use BUIDL-worth $2.5 billion in assets-as off-exchange collateral while maintaining compliance frameworks. This development underscores the growing role of tokenized real-world assets (RWA) in crypto markets, with BUIDL joining a broader trend of institutional-grade assets being integrated into blockchain ecosystems according to reports.

The BUIDL token, which generates yield from U.S. Treasury holdings, is now available on the BNB Chain, enhancing its interoperability with decentralized finance (DeFi) applications. Robbie Mitchnick, BlackRock's global head of digital assets highlighted that the initiative "brings foundational elements of traditional finance into the onchain arena," reflecting a strategic push to align legacy financial instruments with Web3 infrastructure.

The fund's adoption by Binance, the world's largest crypto exchange by volume, signals a shift toward tokenized assets serving as both collateral and liquidity tools in institutional trading as reported.

This shift aligns with broader projections for the RWA market, which is expected to surge as tokenization bridges traditional and digital finance. A 2024 joint report by Boston Consulting Group (BCG) and ADDX forecasts the global RWA tokenization market to reach $16.1 trillion by 2030, while Citi GPS estimates private markets could expand 80-fold to $4 trillion by 2030. These forecasts highlight the potential of asset-backed tokens to offer transparency, efficiency, and compliance in an otherwise fragmented crypto landscape.

The momentum is further reinforced by regulatory developments. The U.S. Securities and Exchange Commission (SEC) is advancing a "token taxonomy" framework to clarify crypto asset classifications, with Chairman Paul Atkins emphasizing that network tokens and NFTs may shed their security status as blockchains mature. Meanwhile, the Commodity Futures Trading Commission (CFTC) is exploring policies to permit stablecoins as collateral in derivatives markets, potentially expanding tokenized assets' utility in 2026.

Treasure Global, a Malaysia-based fintech firm, exemplifies the RWA boom through its partnership with UNIRWA, a reserve-backed token project. The company's subsidiary, Tadaa Technologies, now manages 200 million UNIRWA tokens valued at $100 million, aiming to establish recurring revenue streams and expand fintech offerings in Southeast Asia. This initiative mirrors the broader trend of firms leveraging tokenization to create structured, auditable digital assets.

As tokenized Treasuries and RWAs gain traction, they are reshaping capital efficiency and settlement practices. BNY Mellon recently launched a money market fund tailored for stablecoin issuers, while projects like Mantle and Bybit are tokenizing U.S. stocks to enable 24/7 trading according to industry analysis. These innovations signal a maturing ecosystem where blockchain complements traditional systems rather than displacing them, driven by regulatory clarity and institutional adoption.