Tokenized Treasuries Surpass 2025 High as RWA Market Hits $26.44 Billion

The tokenized Treasury sector has reached a new record, surpassing its previous high set in July 2025, marking a key milestone in the growing adoption of real-world asset (RWA) tokenization within the cryptocurrency market [1]. As blockchain-based financial instruments gain momentum, the broader RWA market capitalization stood at $26.44 billion on August 22, 2025, with a 13.75% increase in the number of token holders compared to the prior month [1]. This surge in interest highlights the sector’s potential to enhance liquidity, transparency, and accessibility in traditional finance through digital transformation.

The rise of tokenized Treasuries is closely linked to the growing use of stablecoins and the demand for U.S. Treasury-backed assets in digital form. This trend has prompted regulatory attention, with the U.S. Treasury Department seeking public input on stablecoin monitoring solutions under the proposed GENIUS Act [1]. The initiative reflects a broader effort to align regulatory frameworks with the evolving digital asset landscape, ensuring oversight while fostering innovation. Meanwhile, the Federal Reserve’s recent meeting minutes emphasized concerns about the systemic risks associated with stablecoins, while also acknowledging their potential to enhance payment efficiency and boost demand for U.S. Treasury securities [1].

In tandem with these regulatory developments, traditional financial institutions are accelerating the tokenization of conventional assets. DBS Bank, for instance, issued tokenized structured notes on the Ethereum blockchain, significantly lowering the investment threshold by reducing the minimum note size to $1,000 per unit [1]. This approach not only broadens access to institutional-grade financial instruments but also underscores the growing synergy between traditional finance and decentralized infrastructure.

S&P Dow Jones Indices is also exploring the development of tokenized index products in collaboration with exchanges and decentralized finance (DeFi) protocols [1]. This move signals a potential shift in how investors access and interact with traditional asset classes, blending the strengths of blockchain technology with well-established financial benchmarks.

Moreover, firms like SkyBridge Capital are expanding into the tokenization space, planning to tokenize hundreds of millions in assets on blockchain platforms such as Avalanche [1]. These initiatives are part of a broader institutional strategy to leverage blockchain for greater efficiency, transparency, and cost reduction in asset management. The continued integration of blockchain in financial infrastructure suggests that tokenized Treasuries and other RWAs are no longer speculative experiments but emerging components of the global capital markets.

As stablecoin ecosystems mature and institutional-grade blockchain solutions proliferate, the tokenization sector is poised for sustained growth. The interplay between increasing demand, technological innovation, and regulatory adaptation is likely to drive further mainstream adoption of tokenized assets, reshaping the landscape of global finance.

Source: [1] RWA Weekly: DBS Bank Issues Tokenized Notes; DigiFT... (https://www.panewslab.com/en/articles/980e2485-0162-456c-8297-ccc69eee3592)