The tokenized U.S. Treasuries market has vaulted to a $4.07 billion valuation, according to data from rwa.xyz, marking a significant milestone in the integration of traditional fixed-income assets with blockchain technology. In just 103 days, the sector added $1.57 billion in market capitalization, a clear testament to booming institutional demand for yield-bearing on-chain products.
Top Three Funds Command Over 56% of the Market
Leading the charge is Hashnote Short Duration Yield Coin (USYC), which combines short-term U.S. Treasury holdings with Reverse Repo agreements. Between November 26, 2024, and March 8, 2025, USYC's market cap surged by $461.2 million, from $495.07 million to $956.27 million. Non-U.S. investors can access USYC via the Hashnote International Feeder Fund or the Short Duration Yield Fund (SDYF) with a minimum stake of $100,000. U.S.-based participants must meet the CFTC’s Qualified Eligible Participant (QEP) criteria.
Ranking second is Franklin Templeton’s Franklin Onchain U.S. Government Money Fund (FOBXX/BENJI), with a market cap of $686.80 million, reflecting a $270.35 million increase over the same period. This fund is available to institutional investors in several European countries, including Austria, France, Germany, Italy, the Netherlands, Spain, and Switzerland.
Claiming the third spot is BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), distributed via Securitize. While BUIDL once dominated the sector 103 days ago with a $530.29 million market cap, its current valuation of $668.41 million places it third. True to its institutional focus, BUIDL requires a hefty $5 million minimum entry threshold. Together, the top three funds account for 56.78% of the total $4.07 billion market.
Broader Ecosystem Growth and Trends
Other notable players include Ondo’s USDY ($592 million) and OUSG ($408 million), Superstate’s USTB ($328 million), Wisdomtree’s WTGXX ($112 million), and Openeden’s TBILL ($96.54 million). According to Rwa.xyz, these 37 tokenized Treasury funds collectively boast an average annual percentage yield (APY) of 4.2%. The number of holders has nearly doubled from 8,754 to 15,463 in just over three months, underscoring a rapid influx of capital and participants. This explosive growth signals that tokenized Treasuries are transitioning from a niche experiment to a mainstream contender in the global financial landscape.