🚨 Tokenized US Treasurys Quietly Went 50× Since 2024
The arrival of US Treasury bonds wasn't very spectacular. They entered through the side entrance, sort of.
Early 2024, the numbers barely registered. A few hundred million on-chain. Easy to ignore. Easy to label as interesting, but not urgent. Then time passed. Capital kept settling. Now the total is hovering near $7B. No hype waves. No victory threads. Just steady growth that didn’t ask for attention.
And this isn’t DeFi suddenly developing a taste for government bonds.
What changed is simpler.
Institutions finally saw something on-chain that behaves the way their balance sheets already do. Short-duration Treasurys aren’t exciting assets. That’s the point. Predictable yield. Minimal price movement. Clear compliance boundaries. Once you tokenize that, add daily accrual, near-instant settlement, and strip out the old settlement delays, it stops feeling experimental. It starts to feel like infrastructure.
That’s why BlackRock’s BUIDL scaled so quickly. It’s intentionally dull. Capital goes in. Yield accrues. Liquidity stays available. Funds move when they need to. Circle’s USYC and Ondo’s OUSG follow the same logic. Regulated access to T-bill yield, without waiting days for cash to clear.
The more interesting shift in 2025 isn’t how large this market has become.
It’s where these assets are being used.
#TokenizedTreasury aren’t sitting passively anymore. They’re appearing inside collateral frameworks. Margin systems. Treasury operations. Even internal settlement processes at banks like DBS. That’s not speculative behavior. That’s operational behavior.
And this is where the framing usually goes wrong.
These instruments aren’t trying to outperform DeFi yield. They’re stabilizing it. When institutions can earn a compliant, steady return on-chain, they don’t need to constantly rotate capital back to TradFi. They can stay deployed, quietly.
This isn’t a narrative trade.
It’s balance-sheet logic, finally running on blockchain rails.