Charted: Tokenized U.S. treasuries
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There's a growing set of issuers putting U.S. treasuries on the blockchain, including asset managers like BlackRock and WisdomTree.
- Fidelity International, meanwhile, reportedly used JPMorgan's private blockchain to tokenize money-market funds.
- Plus, there's Robert Leshner's Superstate and Lucas Vogelsang's Centrifuge on the crypto-native side.
Zoom in: BlackRock and Securitize's tokenized treasuries product BlackRock USD Institutional Digital Liquidity Fund (BUIDL), recently handed its holders $1.7 million in monthly dividends on Ethereum.
- BUIDL accounts for about a third of the overall $1.5 billion market, making it the largest, according to research platform rwa.xyz.
Context: This is still a very small segment in the overall crypto space, one that took off as interest rates did, when the idea of putting a yield-bearing asset on-chain became a business-savvy one.
- See: Paxos's yield-generating stablecoin launch last week.
The big picture: It's all part of a larger movement to make banking hours 24/7, as those tokenized treasuries can be used as collateral for lending and firms supporting a market for them.
What we're watching: Tokenization won't truly take off until more people are using them, according to rwa.xyz's Mac Naggar.
- And for tokenized treasuries to truly thrive, trading needs to rival existing stablecoin pairs, says Naggar. That hasn't happened yet.
