Tokenized U.S. Treasury products have grown to $15.2B in total market capitalization, with four funds controlling nearly 63% of the sector, according to data tracked on-chain.
USYC holds 19.8% of the market, followed by BUIDL at 17.7%, USDY at 13.8%, and iBENJI at 11.5%. The concentration mirrors a pattern common in emerging asset classes where early movers and well-capitalized sponsors capture the majority of inflows. BlackRock's BUIDL and iShares' USDY are among the largest players in the space, each backed by institutional distribution networks and established Treasury fund management operations.
Tokenized Treasury products allow investors to hold U.S. government debt on blockchain networks, enabling instant settlement and integration with smart contracts. Investors can access yields above 4% while gaining on-chain composability for decentralized finance protocols and custodial efficiency for institutional players.
The $15.2B figure represents growth from earlier 2024, when the tokenized Treasury market was measured in single-digit billions. Capital deployment into these products has accelerated as major asset managers including BlackRock, Franklin Templeton, and Ondo Finance brought competing offerings to market. Regulatory clarity from the SEC and Treasury Department regarding blockchain-based securities has removed some barriers to institutional participation.
USYC, the market leader, is issued by Yield Coin and operates across Ethereum and other chains. BUIDL, a BlackRock product launched on Ethereum, manages inflows from both direct institutional clients and secondary market traders. These products operate across multiple platforms including Ethereum, without a single network lock-in.
Market data is tracked through on-chain analytics platforms that aggregate token transfers and holder data, though coverage gaps remain. Smaller tokenized Treasury products and private offerings may not appear in public indices, meaning reported figures capture the liquid, publicly tradeable portion of the market rather than total institutional exposure to blockchain-based Treasuries.
The four largest products together represent $9.6B, or 63% of the $15.2B total. BlackRock and iShares products account for roughly 31% of the measured market. If tokenized Treasury adoption follows patterns seen in spot Bitcoin ETF concentration, market share among the top four products could remain stable or consolidate further as the asset class scales.
