Tokenized US Treasuries reach $7.45 billion all-time high after July correction

US tokenized treasury products reached a new all-time high of $7.45 billion on Aug. 27, surpassing the previous peak of $7.42 billion registered on July 15.

According to rwa.xyz data, the milestone caps a 14% recovery over two weeks following a market correction that bottomed out at $6.51 billion on Aug. 13. The tokenized treasury sector experienced a 12% decline from its mid-July peak.

BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) maintains market leadership with $2.38 billion in assets, representing 32% of total tokenized treasury market capitalization.

Top 30-day performers

Net flow data for the 30 days ending Aug. 28 shows WisdomTree Government Money Market Digital Fund (WTGXX) leading inflows with $440 million, followed by Circle’s USD Coin (USYC) at $253 million.

OpenEden Dollar (TBILL) captured $95 million in new deposits during the recovery period.

Libeara and Ondo Finance also contributed to the rebound, with their ULTRA and OUSG products attracting $36 million and $24 million, respectively.

These inflows offset outflows from Franklin Templeton’s OnChain U.S. Government Money Fund (BENJI), which recorded $78 million in redemptions, and Centrifuge (JTFSY) with $49 million in net outflows.

The five largest tokenized treasury products by market capitalization represent a concentrated market share of 73.6%.

WisdomTree ranks second at $931 million, down from recent highs, while Franklin Templeton’s BENJI holds $744 million. Ondo’s OUSG and USDY products round out the top five with $732 million and $689 million, respectively.

Market structure evolution

The recovery demonstrates growing institutional appetite for blockchain-based treasury exposure despite traditional fixed-income market volatility. Most of these funds have high minimum investment thresholds, such as BUILD’s $5 million minimum deposit.

Tokenized treasuries provide 24/7 trading capabilities and programmable features that are not available in conventional government bond markets. The liquidity model, available at any time, prompted a 256% year-over-year growth in tokenized US treasuries.

Despite the increased appetite for tokenized real-world assets, they still have a long way to go.

Max Gokhman, Deputy Chief Investment Officer for Franklin Templeton Investment Solutions, recently stated that most fund managers are not interested in cryptocurrency.

However, education and yield-related moves, such as approving crypto exchange-traded funds with staking, could help drive more adoption among these investors.

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