The market for tokenized U.S. Treasury funds continues to expand at a rapid pace, with total sector value climbing to $4.77 billion. That marks a dramatic rise from roughly $716 million in March 2024, representing a 566% increase over the past 12 months. Since the opening week of March 2025 alone, tokenized Treasury products have added $720 million, underscoring growing demand for blockchain-based access to short-duration government debt.
BUIDL Emerges as the Main Driver of Recent Growth
A major share of that recent expansion has come from BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), issued through Securitize. Just eight days earlier, the fund had crossed the $1 billion milestone, with holdings reported at approximately $1.004 billion. By March 22, however, BUIDL had climbed to $1.467 billion, an increase of $463 million in a little more than a week.
The speed of that rise highlights how quickly capital is concentrating in tokenized Treasury products backed by major asset managers. BUIDL’s momentum suggests that institutional familiarity, product structure, and issuer credibility are increasingly important in attracting new inflows as the broader real-world asset sector matures onchain.
Other Tokenized Treasury Funds Show Mixed Performance
While BUIDL posted strong gains, not every fund moved in the same direction. Hashnote’s Short Duration Yield Coin (USYC), which ranked behind BUIDL, saw its assets under management decline over the same period. Eight days earlier, USYC held around $868 million in AUM, but by this weekend that figure had fallen to roughly $784 million, a drop of about $84 million.
Elsewhere, Franklin Templeton’s Onchain U.S. Government Money Fund remained largely unchanged from the levels cited in a March 14 update, indicating a period of relative stability rather than either accelerated growth or meaningful outflows.
At the same time, several other onchain Treasury-linked offerings continued to edge higher. Ondo’s U.S. Dollar Yield (USDY) increased from $563 million to $593 million, while Superstate’s Short Duration U.S. Government Securities Fund (USTB) grew from $310 million to $393 million. These moves point to a market that is not expanding through a single product alone, even if BUIDL has become the clearest short-term catalyst.
A Fast-Growing Segment of the RWA Market
The latest figures reinforce the idea that tokenized Treasuries have become one of the most important segments within the broader real-world asset, or RWA, sector. The appeal is straightforward: investors gain exposure to U.S. government debt through blockchain-based rails, while issuers can offer products that potentially benefit from more efficient settlement, transfer, and redemption processes.
This combination of traditional fixed-income exposure and onchain infrastructure has helped tokenized Treasury funds stand out in a digital asset market that increasingly values yield, transparency, and operational efficiency. As more capital enters the space, these products are becoming a notable bridge between conventional asset management and blockchain-native financial systems.
Why the Trend Matters
The jump from $716 million to $4.77 billion in just one year shows that tokenized government debt is no longer a niche experiment. Instead, it is developing into a meaningful category within digital finance. The additional $720 million added since early March indicates that the trend is still accelerating rather than leveling off.
BlackRock’s BUIDL, in particular, appears to be setting the pace. Its rise from $1.004 billion to $1.467 billion in eight days demonstrates how quickly institutional-grade tokenized products can scale once market demand aligns with trusted issuers and accessible blockchain infrastructure.
Although flows remain uneven across providers, the broader market direction is clear: tokenized U.S. Treasuries are drawing sustained attention, and capital continues to move toward products that combine the perceived safety of government securities with the efficiencies of blockchain-based fund architecture.
If current momentum holds, tokenized Treasury funds may further strengthen their position as one of the most commercially significant use cases in the onchain RWA landscape. For now, the latest data shows a sector still growing fast, with BlackRock’s BUIDL at the center of the recent surge.