Blockchain-based US Treasuries are really picking up steam, and it looks like they’re heading towards a new peak value of $6 billion!

Think of these digital financial instruments like modern versions of traditional government bonds, but they exist right on the blockchain. This gives investors a way to earn yield, just like with regular bonds, but with all the cool advantages of blockchain thrown in.

Looking at the data from RWA.xyz, a platform focused on real-world assets, we can see that tokenized treasuries on public blockchains were sitting at $4.01 billion back in January.

Since then, things have really taken off! We’ve seen a jump of over 43%, pushing the total value to around $5.95 billion.

This big leap really shows that major players are starting to believe in blockchain as a way to modernize how fixed-income markets work.

Right now, Ethereum is the king of the hill in this space, holding a whopping $4.3 billion of tokenized Treasuries. Stellar and Solana are playing catch-up with $474 million and $273 million respectively.

BlackRock’s BUIDL dominates market

When it comes to market leaders, BlackRock’s USD Institutional Digital Liquidity Fund, or BUIDL for short, is way out in front.

Data from RWA.xyz reveals that BUIDL has amassed $2.47 billion in assets under management. That’s a massive 42% of the entire tokenized treasury market! And get this, BUIDL’s value has skyrocketed by 92% just in the last month, which highlights just how quickly it’s being adopted.

Again, Ethereum is BUIDL’s blockchain of choice, holding over 91% of its supply – roughly $2.3 billion worth.

The remaining amount is scattered across some of the newer blockchains and Ethereum Layer-2 networks you might have heard of, like Arbitrum, Polygon, Optimism, Aptos, and Avalanche. Interestingly, Aptos and Avalanche each hold around $53 million of BUIDL’s value.

BUIDL, which launched back in March 2024, is designed to pay out dividends daily. These dividends come from the returns on short-term US Treasury assets.

Each BUIDL token is pegged one-to-one with the US dollar, essentially making it function like a stablecoin but with the added perk of yield potential similar to traditional Treasuries.

TradFi embraces blockchain

BlackRock’s success with BUIDL isn’t just a one-off thing, it’s part of a bigger trend! We’re seeing a real embrace of tokenized real-world assets (RWAs) by financial institutions.

Industry experts are pointing out that tokenized Treasuries are becoming a really useful bridge connecting the world of traditional finance with the new decentralized ecosystems of crypto.

Because of this, we’re seeing more and more big financial players jumping into the arena. Take Franklin Templeton, for example, they’re already running a competing tokenized fund that’s reached a market cap of $706 million.

And it sounds like Fidelity is about to join the party too! They recently filed paperwork with the US Securities and Exchange Commission (SEC) to launch “OnChain,” a blockchain-powered version of their Treasury money market fund.

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