Tokenized US Treasury market value surpasses $10.8 billion. Amid capital reshuffling, who still wants to buy cryptocurrencies?

Benefiting from continuous large inflows of institutional and corporate funds, the tokenized U.S. Treasury market showed strong growth momentum in early 2026. According to RWA.xyz data, the market size has increased from $8.9 billion on January 1 of this year to over $1 billion now, with the total market capitalization officially surpassing $10.8 billion. RWA has become the most practical application scenario in blockchain finance to drive capital flow.

BlackRock Launches USD Digital Liquidity Fund “BUIDL” to Boost the U.S. Treasury Market

The tokenized U.S. Treasurys market has shown steady growth. According to Token Terminal statistics, the market size has grown 50 times since 2024. One of the main drivers of this growth is asset management giant BlackRock’s launch of the “USD Institutional Digital Liquidity Fund” (BUIDL) in March 2024. Currently, the fund’s market value exceeds $1.2 billion, demonstrating that participation by traditional financial giants plays a key role in enhancing on-chain bond market liquidity. Tokenized Treasurys refer to government-issued debt instruments transformed into digital tokens via blockchain technology, enabling real-world assets to be traded and recorded on decentralized ledgers, thereby improving transfer efficiency and lowering participation barriers.

Cryptocurrency Market Slumps, Tokenized U.S. Treasurys Continue to Rise

Despite high uncertainty in the macroeconomic outlook for 2026 and concerns over rising U.S. Treasury levels, the market value of tokenized Treasurys continues to grow. Since October 2025, the cryptocurrency market has been in a downturn, with investors seeking relatively stable assets amid volatility. U.S. Treasurys, known for their liquidity, have long been considered a pillar of global finance and corporate financing, with companies and institutional investors often viewing them as cash substitutes. In the blockchain environment, tokenization of these assets not only retains their low-risk characteristics but also offers simplified trading advantages. The surge in U.S. Treasury tokenization can also generate significant protocol revenue for blockchain networks responsible for minting and managing these digital assets.

DTCC Launches Tokenized Treasury Service, Joins RWA Investment Market

Major global financial clearing institutions are adjusting their operations to adapt to the tokenization trend. The Depository Trust & Clearing Corporation (DTCC), which provides clearing and settlement services for the global financial market, launched an asset tokenization service plan in December 2025, with U.S. Treasurys as the first targeted asset. As the largest clearing organization worldwide, DTCC handled transactions worth $3.7 quadrillion in 2024, marking a significant step into the blockchain space. CEO Frank La Salla stated that DTCC plans to initially implement tokenization operations on the Canton network, then gradually expand services to include ETFs and stocks in the tokenized clearing system.

Capital Flows to RWA—Who Still Buys Cryptocurrency?

The rise of tokenized Treasurys is changing traditional capital flow patterns, especially regarding liquidity management needs of institutional investors. RWA allows investors to directly access fixed income from U.S. Treasurys, providing a safe haven supported by real assets during crypto market volatility. In the long term, integrating such assets could open new blue oceans in financial markets and inject more stable liquidity into decentralized finance. However, as funds tilt toward low-risk tokenized Treasurys, this may also cause a dispersal effect on capital previously invested in the crypto market, posing new challenges to the structure of crypto asset markets.

This article, “Tokenized U.S. Treasurys Market Surpasses $10.8 Billion, Who Still Buys Cryptocurrency Amid Capital Reshuffling?” first appeared on Chain News ABMedia.