Tokenized U.S. Treasuries Surge 6% in a Week, Nearing $7 Billion

Tokenized U.S. Treasuries Surge 6% in a Week, Nearing $7 Billion

The market for tokenized U.S. Treasuries has expanded rapidly, growing 6% in just one week to reach a cumulative value of $6.89 billion as of early May 2025.

On May 2, tokenized Treasuries crossed the $6.5 billion mark for the first time, and have since attracted an additional $390 million in inflows. Compared to $4.03 billion at the start of the year, the market has now grown by 71% in just five months.

BlackRock’s flagship USD Institutional Digital Liquidity Fund (BUIDL) saw $36 million in new inflows, rising from $2.871 billion to $2.907 billion. Franklin Templeton's OnChain U.S. Government Money Fund (BENJI) added $10.61 million, reaching $727.45 million in AUM. Meanwhile, Ondo Finance's USDY fund outpaced peers with a robust $48.53 million increase.

The continued capital inflows highlight growing institutional trust and adoption of blockchain-based financial infrastructure. Tokenized government bonds are no longer experimental—they’re becoming a mainstream investment vehicle.

If yields stay attractive and settlement efficiencies persist, on-chain funds could evolve into a primary channel for Treasury market exposure in the digital era.