365Crypto
Onchain Government Debt Keeps Climbing
Tokenized US Treasurys have grown by more than $1 billion since January 2026. The market now stands above $10.8 billion, up from $8.9 billion at the start of the year. That is steady growth during a tense macro cycle.
These assets are US government bonds issued as real-world assets and represented on blockchain networks as tokens. Investors can hold them onchain while gaining exposure to short-term government debt. Old bonds. New rails.
Growth Despite Market Stress
The broader crypto market has faced pressure since late 2025. Government debt levels are rising. Investor uncertainty remains high. Yet tokenized Treasurys continue to expand.
Data shows the sector has grown roughly 50 times since 2024. A key driver was the launch of BlackRock’s BUIDL fund in March 2024. The fund now holds over $1.2 billion in market value.
Institutional players appear comfortable with tokenized debt. US Treasurys remain one of the most liquid instruments in global finance. Many firms use short-term Treasurys as a cash alternative.
DTCC Plans Tokenization Push
In late 2025, Depository Trust and Clearing Corporation announced plans to launch a tokenization service starting with US Treasurys. The company processes trillions in transactions each year.
Leadership has signaled that exchange-traded funds and equities may follow. If that shift happens, traditional markets could move deeper onto blockchain infrastructure.
Supporters argue that tokenized government debt may bring new revenue streams to blockchain networks. More assets onchain means more fees paid in gas and settlement costs.
Footnotes:
RWA: Real-world asset represented on a blockchain.
Tokenization: Converting ownership of an asset into a digital token.
Liquidity: How easily an asset can be bought or sold without affecting its price.
