Tokenized U.S. Treasury funds have attracted approximately $770 million in new inflows over the past 11 days, indicating growing investor confidence in digital real world asset (RWA) products, according to the latest market data from rwa.xyz.
Investor demand for tokenized government bonds will reach record levels in 2025
In 2025, tokenized government bonds are quickly emerging as one of the hottest innovations in digital finance. These on-chain products represent real-world U.S. Treasury securities issued and traded through a blockchain network, providing investors with fast settlement, transparent ownership, and programmable yield access.
By bridging traditional finance (TradFi) and decentralized finance (DeFi), tokenized Treasuries are redefining how investors access safe, yield-producing assets, turning U.S. Treasuries into digital, fractional, globally tradable tokens. Currently, the value locked in all tokenized treasury funds is $8.42 billion.
Inside the $770 million tokenized treasury surge
Among the top performers since the last update on Oct. 1, BlackRock's USD Institutional Digital Liquidity Fund (ticker: BUIDL) surged $329 million over the same period, making it one of the single largest contributors to overall inflows, according to Rwa.xyz statistics.
This continued rise highlights the accelerated adoption of tokenized money market and treasury products as institutional and digital asset investors seek on-chain alternatives that generate stable yields backed by U.S. government securities.
On October 1, Ondo's U.S. Short-Term Treasury Bond Fund (OUSG) was ranked second after BlackRock's BUIDL Fund. However, over the next 11 days, OUSG slipped to third place in total tokenized treasury lock value (TVL), but still attracted a remarkable $62.4 million in new inflows.
BENJI, Franklin Templeton’s on-chain money market fund, moved to second place among tokenized financial products following a significant increase in TVL from $717.4 million to $861.05 million. Ondo’s US dollar yield (USDY), which ranks fourth among tokenized treasury and yield products, maintained a constant TVL of $689 million.
Rounding out the top five tokenized financial products, WisdomTree’s USD Institutional Digital Fund (WTGXX) has increased its TVL from $557.2 million to $600 million in the past 11 days. This is an increase of $42.8 million. Among the remaining tokenized financial products, Circle's United States Treasury Fund (USYC) experienced a pullback, decreasing from $636.2 million to $597 million during the observation period.
Tokenized U.S. Treasuries are proving to be more than a niche innovation as more investors seek stable, high-yielding assets without the friction of traditional intermediaries. Market analysts predict that the tokenized government bond market could soar to trillions of dollars, ushering in a pivotal expansion phase for real world assets (RWA).
🔍 Quick FAQ: Tokenized US Treasuries and RWA Market Growth
- What is Tokenized U.S. Treasuries?These are digital representations of U.S. government bonds issued on a blockchain network, allowing for faster, more transparent, and programmable yield access.
- Why are investors moving to tokenized treasury funds?Investors are attracted to stable yield-producing assets that combine the safety of traditional U.S. Treasurys with on-chain efficiency and liquidity.
- Which funds will lead the tokenized government bond market in 2025?Blackrock's BUIDL, Franklin Templeton's BENJI, and Ondo's OUSG top the list of inflows and total value locked (TVL).
- 4. How big can a tokenized treasury department grow?Analysts expect the tokenized government bond market to expand further in the future.This marks a massive growth phase for digital real world assets (RWA).
