Tokenized Treasurys Surge Past $10.8 Billion Amid Institutional Interest

The market for tokenized U.S. Treasury securities has experienced significant growth, reaching a total market capitalization above $10.8 billion as of 2026. This increase in value comes despite elevated macroeconomic uncertainty and a prolonged downturn across broader crypto markets that began in October 2025.

Tokenized Treasurys are digital representations of U.S. government debt instruments, allowing institutional and corporate investors to hold, transfer, and settle securities directly on a blockchain network. This eliminates the need for traditional clearing house settlement cycles, providing greater efficiency and convenience.

The sector has grown substantially since 2024, with a notable inflection point occurring in March 2024 with the launch of BlackRock's USD Institutional Digital Liquidity Fund (BUIDL). The success of this fund has contributed to the growth of the tokenized Treasury market, which now boasts a market capitalization exceeding $1.2 billion.

The involvement of major financial institutions, such as the Depository Trust and Clearing Corporation (DTCC), is expected to further boost the sector's expansion. The DTCC plans to launch a tokenization service starting with U.S. Treasurys, which will be extended to exchange-traded funds and equities after the initial rollout.