Tokenised US Treasury Market Surges to $33.7 Billion

The tokenised US Treasury market has been growing rapidly, reaching a total on-chain asset value of $33.7 billion as of May 2026. This growth is driven primarily by institutional money-market funds using public blockchains as a faster prime-broker layer.

BlackRock's BUIDL is one of the leading tokenised Treasury products, with over $2.58 billion in assets under management (AUM) as of late April 2026. OUSG and USDY are also prominent players in the market, with AUMs of $704 million and $683 million respectively.

The use of tokenised Treasuries has significant implications for the stablecoin reserve composition. If even 20% of the conventional Treasury holdings held by Tether were to migrate on-chain, the tokenised-Treasury market would more than double overnight.