Tokenized Treasuries and Stocks Hit New Highs in 2025

Tokenized U.S. Treasuries and traditional equities have reached record levels in 2025, fueled by institutional appetite for blockchain-enabled efficiency and yield amid economic uncertainty. This surge highlights the growing adoption of real-world asset (RWA) tokenization, where assets like government bonds and stocks are digitized on blockchains, allowing fractional ownership, continuous trading, and fewer intermediaries. By late 2025, tokenized treasuries alone surpassed $8 billion in value, with tokenized stocks following through platforms offering shares of major companies.

Key Drivers of Growth

Industry leaders such as BlackRock, Franklin Templeton, and Ondo Finance have launched tokenized treasury funds—BlackRock’s BUIDL fund, for instance, captured over 40% market share and grew 370% YTD, leveraging stablecoin integration and regulatory support. Tokenized stocks, representing blue-chip equities, benefit from SEC-compliant wrappers, enabling on-chain trading without full security registration. The sector’s growth, up 250% from 2024, is driven by lower transaction costs (up to 70% savings) and global accessibility, particularly amid U.S. tariff pressures increasing demand for secure yield.

Market Size and Projections

The total RWA market reached $33 billion by October 2025, with treasuries accounting for $8.8 billion and tokenized equities expected to reach $24 billion, reflecting a 300% three-year growth. Private credit makes up 61% of the market, but treasuries and stocks are the fastest-growing segments due to their liquidity and low risk. If legislation like the GENIUS Act advances stablecoin frameworks, the sector could scale to $1.5 trillion by year-end. Institutional investors account for roughly 70% of capital, signaling confidence in tokenized assets as a bridge between traditional finance and crypto.

Challenges and Outlook

Despite record growth, challenges remain, including regulatory clarity for tokenized stocks—particularly for retail participation—and cross-chain interoperability