The tokenized U.S. Treasury market crossed $11 billion in total assets in March 2026, according to RWA.xyz data, up from approximately $1.7 billion in mid-2024 — a 547% increase in under two years. In the span of a single week ending March 25, three events accelerated institutional convergence on...
"Our view was to leverage what we do best, which is investment management, risk management and distribution, and partner with a leading provider when it comes to the on-chain infrastructure component." — Kathleen Wrynn, Global Head of Digital Assets, Invesco
The tokenized U.S. Treasury market crossed $11 billion in total assets in March 2026, according to RWA.xyz data, up from approximately $1.7 billion in mid-2024 — a 547% increase in under two years. In the span of a single week ending March 25, three events accelerated institutional convergence on the sector: Invesco assumed management of Superstate's $967 million USTB fund, the New York Stock Exchange signed a memorandum of understanding with Securitize to build a 24/7 tokenized securities platform, and Circle's USYC fund surpassed BlackRock's BUIDL to become the largest single product at $2.2 billion.
These are not pilot programs. Five of the ten largest global asset managers now operate or manage tokenized Treasury products. The competitive dynamics have shifted from "whether to tokenize" to "who controls the infrastructure stack." This report maps the current competitive landscape, identifies the economic forces driving adoption, and assesses the structural risks that remain.
Tokenized U.S. Treasury products collectively held over $11 billion in assets as of mid-March 2026, according to CoinDesk reporting on RWA.xyz data. The growth trajectory:
| Period | Total AUM | Change | |--------|-----------|--------| | Mid-2024 | ~$1.7B | Baseline | | End 2024 | ~$3.5B | +106% | | End 2025 | ~$7.3B | +109% | | March 2026 | $11B+ | +51% YTD |
The broader tokenized real-world asset market — which includes private credit, commodities, and real estate alongside Treasuries — reached $12 billion in March 2026, meaning Treasuries account for approximately 92% of total tokenized RWA value. This concentration is itself a data point: capital is flowing to the lowest-risk, most liquid instrument available on-chain.
The number of distinct fund products has also grown. At least 25 tokenized Treasury or government money market products now operate across Ethereum, Solana, Stellar, Avalanche, BNB Chain, and Sei, according to RWA.xyz listings. Not all are meaningful by AUM — the top five products account for roughly 70% of total value.
The tokenized Treasury market is dominated by six issuers or managers, each with distinct strategies:
1. Circle (USYC) — $2.2 billion AUM Circle acquired Hashnote, the original USYC issuer, in early 2025. USYC became the largest tokenized Treasury product in March 2026, surpassing BlackRock's BUIDL. Much of the growth is attributable to Binance's adoption of USYC as off-exchange collateral for institutional derivatives trading on BNB Chain, where $1.84 billion of the $2.2 billion in supply resides. This concentration on a single chain and single use case (collateral) is notable.
2. BlackRock (BUIDL) — ~$2.0 billion AUM Launched in March 2024 in partnership with Securitize, BUIDL was the first tokenized Treasury product to cross $1 billion. Its market share fell from a 46% peak in May 2025 to approximately 18% by March 2026, according to CoinDesk. BUIDL became tradable on Uniswap in February 2026 for pre-qualified, whitelisted investors and distributed approximately $100 million in dividends since inception.
3. Franklin Templeton (BENJI/FOBXX) — ~$1.0 billion AUM The Franklin OnChain U.S. Government Money Fund, represented by BENJI tokens, reached approximately $1.01 billion in total assets, per RWA.xyz data. The fund operates across seven blockchain networks. Franklin Templeton launched a patent-pending intraday yield feature on its Benji platform in 2025.
4. Superstate/Invesco (USTB) — $967 million AUM As of the March 24 announcement, USTB holds $967 million in short-duration U.S. government securities. The fund's 30-day yield sits near 3.44%, with holdings concentrated in Treasury bills maturing between March and May 2026.
5. Ondo Finance (USDY/OUSG) — ~$1.4 billion combined AUM Ondo operates two primary products: USDY (a yield-bearing stablecoin backed by short-term Treasuries and bank deposits, approximately 4.25% APY) and OUSG (a tokenized short-term Treasury fund). Combined managed assets are approximately $1.4 billion. Ondo announced plans to launch tokenized U.S. stocks and ETFs on Solana in early 2026.
6. Fidelity (FDIT) — ~$200 million AUM Fidelity launched its Digital Interest Token on Ethereum in August 2025, mirroring one share of the Fidelity Treasury Digital Fund. As of recent data, AUM stands at approximately $200 million with a 0.20% management fee. Bank of New York Mellon provides custody.
On March 24, 2026, Invesco Ltd. ($2.2 trillion in total AUM) announced it would become investment manager of Superstate's USTB fund. The deal structure illustrates an emerging model for institutional tokenization:
Division of labor: Invesco handles day-to-day portfolio management, risk management, and distribution. Superstate retains responsibility for on-chain infrastructure — tokenized issuance, blockchain-based settlement, and digital transfer agency services.
Continuity: The fund maintains its investment strategy, smart contracts, token address, and USTB ticker. Upon transition completion (expected Q2 2026), it will be renamed Invesco Short Duration US Government Securities Fund.
Significance: As Superstate CEO Robert Leshner stated, this "marks the first time an independent asset manager has leveraged Superstate's tokenization infrastructure." The model separates investment management from tokenization infrastructure, analogous to how traditional fund managers use third-party administrators and custodians.
For Invesco, the deal represents entry into a $11 billion market without building proprietary blockchain infrastructure. For Superstate, it validates a platform model — providing tokenization-as-a-service to traditional asset managers rather than competing with them.
The same week, the New York Stock Exchange signed a memorandum of understanding with Securitize to co-develop a Digital Trading Platform for 24/7 trading of tokenized U.S. equities and ETFs. Key parameters:
NYSE Group President Lynn Martin stated: "As we explore how tokenization can enhance capital markets, it is critical that new infrastructure is developed in a way that preserves the trust, transparency, and protections investors expect."
Securitize CEO Carlos Domingo drew a distinction between the NYSE initiative and existing tokenized equity products: "Most of these tokenized equities efforts today, they're not really tokenizing the equity. They're creating derivatives or price trackers. So this is about really working with the issuers to do native tokenization."
This distinction matters. The difference between a synthetic wrapper referencing an equity and a natively tokenized share with the same legal standing as a traditional share is the difference between a derivative product and a market infrastructure upgrade. The NYSE-Securitize effort targets the latter.
Circle's USYC overtaking BlackRock's BUIDL as the largest tokenized Treasury product in March 2026 warrants examination, as the mechanism reveals structural dynamics in the market.
BUIDL's market share erosion — from 46% to 18% in ten months — is not primarily a story of underperformance. It reflects the fragmentation of a growing market. When the total market was $4 billion, BUIDL's $1.8 billion represented 46%. Now that the market exceeds $11 billion, $2 billion represents 18%. BUIDL still grew in absolute terms.
USYC's ascent is more narrowly explained. According to CryptoSlate analysis, $1.84 billion of USYC's $2.2 billion supply sits on BNB Chain, where Binance adopted it as off-exchange collateral for institutional derivatives trading in July 2025. This single integration accounts for roughly 84% of the product's total AUM.
The concentration risk is apparent: USYC's leadership position depends heavily on a single distribution channel (Binance) and a single use case (derivatives collateral). BlackRock's BUIDL, by contrast, is deployed across multiple chains and use cases, including DeFi composability via Uniswap.
The dominance of Treasuries within the tokenized RWA market — 92% of total value — is not accidental. Several economic factors explain the concentration:
1. Regulatory clarity. The SEC-CFTC joint interpretation issued March 17, 2026 classified major cryptocurrencies as digital commodities and established a token taxonomy. Tokenized Treasury funds, structured as regulated money market or government securities funds, operate within well-understood legal frameworks.
2. Yield differential. With the Federal Reserve holding rates at 3.5%-3.75% as of March 18, 2026, short-duration Treasuries yield meaningfully more than stablecoin deposits on most DeFi protocols. A tokenized Treasury product offering 3.4%-4.25% APY competes directly with idle stablecoin balances.
3. Collateral utility. Tokenized Treasuries serve as yield-bearing collateral in DeFi and CeFi alike, unlike stablecoins which generate no yield for holders. Binance's adoption of USYC as derivatives collateral is the clearest example, but the same logic applies to lending protocols and margin systems.
4. Settlement efficiency. On-chain settlement of Treasury fund shares enables near-instant transfers between counterparties, compared to T+1 settlement in traditional markets. For institutional treasury management, this is operationally significant.
5. 24/7 availability. Tokenized Treasury products trade continuously, unlike underlying Treasury securities which operate on market hours. For global institutions operating across time zones, this eliminates dead periods.
Several risks and unresolved questions temper the growth narrative:
Concentration risk. The top three products (USYC, BUIDL, BENJI) hold approximately 47% of total market value. USYC's dependence on Binance's BNB Chain integration represents single-counterparty risk.
Regulatory uncertainty. The CLARITY Act draft's proposed prohibition on platforms offering yield on stablecoins, if enacted, could alter the competitive dynamics between stablecoins and tokenized Treasuries. The Act triggered crypto sector sell-offs in late March 2026. The full regulatory framework remains in flux.
Redemption mechanics. Tokenized Treasury funds ultimately depend on traditional financial infrastructure for underlying asset custody and settlement. During periods of market stress, the gap between on-chain token liquidity and off-chain redemption capacity could produce dislocations.
Fee compression. As more asset managers enter the space, fee pressure will intensify. Fidelity's 0.20% management fee already undercuts several competitors. A race to zero is plausible for products that serve primarily as collateral infrastructure.
Smart contract risk. Funds operating across multiple chains and protocols face composability risks. The Balancer Labs dissolution following a $128 million exploit (March 2026) demonstrates that DeFi infrastructure failures can have cascading consequences.
The tokenized Treasury market's growth from $1.7 billion to $11 billion in under two years is driven by a convergence of regulatory clarity, yield economics, and institutional demand for on-chain collateral. The competitive landscape has evolved from a single-product market (BlackRock's BUIDL) to a multi-issuer ecosystem where traditional asset managers, crypto-native firms, and exchange operators are building overlapping but distinct infrastructure.
The Invesco-Superstate partnership and NYSE-Securitize MOU, both announced in the same week, represent an inflection point: the separation of investment management from tokenization infrastructure into distinct, specialized layers. This mirrors the unbundling that occurred in traditional fund administration decades ago — custodians, transfer agents, and portfolio managers occupy separate roles with separate economics.
The market's near-term trajectory depends on three variables: the final shape of the CLARITY Act and its treatment of stablecoin yield, the pace of SEC approval for platforms like NYSE's Digital Trading Platform, and whether tokenized Treasuries can serve as composable collateral across both centralized and decentralized venues without redemption friction. The first variable is political, the second regulatory, and the third engineering. All three remain open.