Tokenized Treasuries Cross $5B Mark Amid Fidelity’s Endorsement of RWAs for Collateral

Tokenized Treasuries Cross $5B Milestone as Institutional Interest Grows

The market capitalization of tokenized U.S. Treasuries has officially surpassed $5 billion, marking a significant milestone in the rise of real-world assets (RWAs) on blockchain, according to rwa.xyz data.

This rapid growth—$1 billion added in just two weeks—has been driven by surging investor interest, particularly in BlackRock’s and Securitize’s flagship tokenized Treasury fund, BUIDL.

Tokenized Treasuries have emerged as one of the most sought-after segments in asset tokenization, drawing attention from both traditional financial giants and digital asset firms. In a notable move, Fidelity Investments recently applied for regulatory approval to launch its Fidelity Treasury Digital Liquidity fund on Ethereum.

“We see immense potential in tokenization to transform financial markets by increasing efficiency, liquidity, and accessibility,” said Cynthia Lo Bessette, head of Fidelity Digital Asset Management, in a statement to CoinDesk.

These blockchain-based Treasury products offer investors an alternative to conventional money market funds, providing yield on idle capital while also being integrated into decentralized finance (DeFi) as reserve assets. Additionally, they hold promise as collateral in financial transactions.

“Utilizing tokenized Treasuries as collateral could optimize capital management and enhance market infrastructure,” Bessette added.

State Street’s Chief Product Officer, Donna Milrod, has echoed similar sentiments, suggesting that tokenized collateral could have provided a solution during the 2022 pension fund crisis by enabling margin calls without requiring asset liquidation.

Momentum Continues to Build

The expansion of tokenized Treasuries is expected to accelerate further. Securitize recently announced that BUIDL is on track to surpass $2 billion in assets by early April. Meanwhile, Spark—an ecosystem partner of stablecoin issuer Sky (formerly MakerDAO)—plans to allocate $1 billion across BUIDL, Superstate’s USTB, and Centrifuge’s tokenized fund managed alongside Anemoy and Janus Henderson.

With growing institutional adoption and evolving use cases, tokenized Treasuries are poised to play a key role in reshaping both traditional finance and blockchain-based investment strategies.