Tokenised US Treasury bond market reaches $2 billion milestone

The tokenised U.S. Treasury bond market has surpassed $2 billion in value, marking a significant achievement in the growing token economy.

As of the end of August, the total value of tokenised U.S. Treasuries, bonds, and cash-equivalents has reached $2.07 billion, representing a staggering increase of over 1,872% since January 1, 2023.

According to rwa.xyz, BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) leads the market with a market cap of approximately $502.54 million.

Franklin Templeton's Onchain U.S. Government Money Fund, known as BENJI, follows closely with a market cap of $427.94 million.

Ondo Finance's projects also hold significant value, with its U.S. Dollar Yield project at $384.45 million and the Short Term U.S. Government Bond Fund at $221.26 million.

Hashnote’s Short Duration Yield Coin adds another $225.64 million to the total market, underscoring the diverse range of tokenised assets available.

Of the total $2.07 billion, $1.5 billion is minted on the Ethereum (CRYPTO:ETH) blockchain, while Stellar (CRYPTO:XLM) and Solana (CRYPTO:SOL) host $437.6 million and $60.6 million, respectively.

Although BlackRock and Franklin Templeton lead in individual fund sizes, Ondo Finance surpasses them collectively with a combined market cap of $605.7 million across its projects.

Geographically, the U.S. dominates the tokenised bond market with $1.65 billion in assets, followed by the Cayman Islands with $225 million and the British Virgin Islands with $114.05 million. Other active jurisdictions include Singapore, Switzerland, Germany, and Liechtenstein.

The rapid growth of the tokenised U.S. Treasury and bond market in 2024 reflects a broader trend towards the tokenisation of real-world assets (RWAs), including fiat-pegged tokens and precious metals.

Institutional investors like BlackRock and Franklin Templeton are increasingly confident in the potential of blockchain-based assets, suggesting a shift towards more diverse and decentralised financial systems.

At the time of reporting, Ethereum price was $2,476.89, Stellar price was $0.09089, and Solana price was $132.72.