Public blockchains tokenize US Treasurys, surpassing $1 billion in value.

Tokenized United States Treasurys on public blockchains have exceeded $1 billion in value, as traditional financial institutions continue to migrate securities onto the blockchain during a period of high interest rates.
Data from 21.co and Dune Analytics reveals that as of March 28, there were $1.07 billion worth of tokenized government securities across 17 different products. The majority of these assets are based on the Ethereum, Polygon, and Stellar networks.
Leading the pack is Franklin Templeton, an investment firm, with over $360.1 million in assets, accounting for 33.6% of the market share. Franklin Templeton’s tokenized fund, the Franklin OnChain U.S. Government Money Fund (FOBXX), which launched in 2021, is represented by the BENJI token and operates on the Polygon and Stellar blockchains.
In second place is BlackRock’s USD Institutional Digital Liquidity Fund, or BUILD, with $244.8 million worth of tokenized assets, representing 22.8% of government Treasurys on the blockchain.


Data: 21.co/Dune Analytics
Treasurys are debt securities issued by the U.S. federal government. Investors purchase these securities, lending money to the government, and in return, the government promises to repay the principal amount along with interest on a specified date.
The recent increase in interest rates in the United States has made government treasuries more appealing to investors in terms of risk and return. As of March, the U.S. Federal Reserve has maintained its benchmark interest rates at a 23-year high of 5.25% to 5.50% in order to control inflation. As a result, the value of blockchain-based digital tokens representing U.S. Treasury securities has risen by 641% in 2023.
Tokenizing U.S. Treasurys on a blockchain involves creating digital tokens that represent ownership of the underlying security. This process has an impact on how securities are issued, traded, and managed, offering greater liquidity and enabling investors with less capital to participate. Major financial institutions such as UBS and JPMorgan have also entered the asset tokenization space, with projects focused on bridging traditional financial assets and blockchain technology.
Cryptocurrency projects are also getting involved in tokenized U.S. Treasurys to support their operations. For example, decentralized finance platform Ondo Finance is now the largest holder of BlackRock’s BUILD, owning 38% of the fund’s supply, according to Tom Wan, a data analyst at 21.co.
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