Tokenized Treasuries Hit Record High Amid Rising Interest Rates

Tokenized Treasuries have been gaining popularity among institutional investors, with total value locked reaching a record $15.35 billion on May 13. This surge can be attributed to the growing concern of inflation and rising interest rates.

The Federal Reserve's rate hike expectations have led to a shift in investor sentiment, causing capital to flow into tokenized Treasuries as a safer alternative to spot cryptocurrency. The current seven-day average yield of around 3.41% is attractive to institutional allocators trained on money market fund mechanics.

Circle's USYC leads the sector with approximately $2.9 billion in assets, followed closely by BlackRock's BUIDL at roughly $2.58 billion. Fidelity's FDIT and Franklin Templeton's BENJI also feature prominently among the top five tokenized Treasury products.