Tokenized treasuries hit $13.74B as institutions push utility

Shift from issuance to real-world utility

The early years of tokenization mainly brought traditional financial products such as Treasury bills and money market funds onto blockchains for the first time. This initial rollout established technical models and compliance frameworks, but actual usage stayed limited to holding digital versions of familiar securities.

As the value onchain grows, the emphasis has moved toward integrating these assets into active capital deployment. Product design now favors liquidity, easy movement across platforms, and the practical use of tokenized treasuries in trading and lending. The rise in utility reflects growing confidence among institutions and aligns with crypto’s drive to connect real-world assets directly to digital finance.

Franklin Templeton has played a notable role here. The global investment firm manages the Franklin OnChain U.S. Government Money Fund, which allocates nearly all capital to U.S. government-backed assets. Franklin Templeton argues that tokenized funds unlock new possibilities for investor participation and capital efficiency, moving well beyond a simple digital copy of existing funds.

Standard Chartered and crypto exchange OKX recently launched a collateral mirroring program that allows institutional finance clients to use tokenized money market funds, such as those offered by Franklin Templeton, as eligible collateral for live trading. This development opens new liquidity channels and enables more dynamic use of blockchain-based treasuries.

Platforms drive capital efficiency and market participation

Platform providers are shaping the next stage of tokenized treasury adoption. BounceBit, a digital asset infrastructure firm, has structured its business to connect regulated custody with blockchain-based execution. Its RWA (real-world asset) stack integrates offerings like Ondo’s USDY and Franklin Templeton’s Benji, both of which represent short-duration government-backed assets in tokenized form.

BounceBit’s Prime platform mirrors custodied assets from leading banks such as Standard Chartered to digital venues, enabling clients to maintain secure custody while deploying capital efficiently across trading strategies. This approach reduces settlement risks and allows for more flexible utilization of tokenized cash equivalents as working capital.

The company targets yields above the risk-free rate through market-neutral trading and structured strategies rooted in real-world assets. BounceBit’s solution highlights a broader market desire to transform passive holdings into productive, yield-generating collateral, reshaping treasury management for institutions participating in crypto markets.

Circle, best known as the issuer of the USDC stablecoin, has also advanced its tokenization strategy by acquiring Hashnote and expanding its USYC product. Circle now positions USYC as a yield-bearing collateral option within digital asset platforms, further reinforcing the trend of driving value from tokenized government securities.

Products such as BlackRock’s BUIDL and Ondo’s USDY also continue to shape the competitive landscape, combining trusted government assets, fast settlement, and digital compatibility to attract more institutional participants to onchain capital markets.