Tokenized Treasuries Hit $5B Benchmark as Fidelity Emphasizes RWAs’ Role in Collateralization

Tokenized Treasuries Hit $5B as Institutional Interest Grows

The value of tokenized U.S. Treasuries has surpassed $5 billion for the first time, signaling accelerating demand for blockchain-based real-world assets (RWAs), according to rwa.xyz data.

This milestone comes amid a $1 billion surge in just two weeks, with BlackRock’s BUIDL fund and Securitize leading the charge in this rapidly expanding market.

Traditional financial giants are also entering the space. Last week, Fidelity Investments applied to launch its own tokenized money market fund, Fidelity Treasury Digital Liquidity, on Ethereum, further validating institutional interest in tokenization.

“We see tokenization as a game-changer for financial markets, offering greater efficiency in capital deployment and liquidity management,” said Cynthia Lo Bessette, head of Fidelity Digital Asset Management, in a statement to CoinDesk.

Tokenized Treasury assets provide investors with a way to earn yield on blockchain while also serving as a reserve asset for decentralized finance (DeFi) protocols. Additionally, they hold potential as collateral for institutional trading and asset management strategies.

“Using tokenized assets as non-cash collateral for margin requirements could enhance operational efficiency and unlock new opportunities for capital optimization,” Bessette added.

Rapid Expansion Expected to Continue

The tokenization trend is poised for further growth. Securitize projects that BUIDL will surpass $2 billion in assets by early April, while Spark—a key partner in the Sky (formerly MakerDAO) ecosystem—plans to deploy $1 billion into BUIDL, Superstate’s USTB, and Centrifuge’s Anemoy-Janus Henderson fund.

As adoption increases among major asset managers and blockchain technology continues to integrate with traditional finance, the tokenized Treasury market is set to expand even further.