What Are Tokenized Treasuries? The Most Stable Direction in RWA
Recently, I've received many private messages asking about RWA (Real World Assets). To be honest, the term sounds quite intimidating, but if you break it down, it's essentially about moving those "legitimate assets" from the real world onto the blockchain.
In this article, I'll explain what tokenized treasuries are, why they've suddenly become so popular, and how regular players can participate. There will be operational suggestions at the end to help you implement this part of your allocation.
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What are Tokenized Treasuries? Simply put, it's "putting US Treasuries on the chain"
Let's address the most basic question first.
Tokenized treasuries, in simple terms, involve turning low-risk assets from traditional finance, like US Treasuries, into digital tokens using blockchain technology. Holding one token means you hold the corresponding share of the income rights to US Treasuries.
Why would someone do this? Although treasuries in traditional finance are safe, the barrier to entry is quite high. To buy US Treasuries directly, you need to open a brokerage account, go through KYC, and accept a T+1 or even T+2 settlement cycle for funds. After tokenization, you only need a crypto wallet and some stablecoins to complete subscriptions and redemptions on-chain, 24/7.
More importantly, these tokenized treasuries can be integrated into the DeFi ecosystem. Your treasury tokens can be directly used as collateral to borrow stablecoins, or provided as liquidity on DEXs to earn extra yield. This is something traditional treasuries simply cannot do.
How Fast Has the Market Grown? From zero to 30 billion in just two years
Now that we've covered the concept, let's look at the actual numbers.
According to data from RWA.xyz, as of May 2026, the overall tokenized RWA market size was approximately $30.9 billion, with tokenized treasury products contributing about $15.35 billion. This figure represents an increase of over 200% compared to the beginning of 2025.
Breaking it down, the tokenized treasury market currently shows a "two peaks + long tail" competitive landscape. Circle's USYC leads with a scale of about $3 billion, followed closely by BlackRock's BUIDL with approximately $2.58 billion. These two top products together account for over one-third of the market share.
The track is still expanding rapidly. In May 2026, JPMorgan Chase submitted an application to the SEC, planning to launch its second tokenized money market fund, JLTXX, on Ethereum. BlackRock also filed registration applications for two new tokenized funds in the same month. Traditional asset management giants are rushing in, and this is not just talk.
Why Are Tokenized Treasuries So Stable? Two core logics
Let's return to why this direction is called "the most stable direction in RWA."
The first logic is that the underlying asset is solid enough. The underlying asset of tokenized treasuries is US Treasuries, backed by the credit of the US federal government. It's not unusual for Bitcoin to drop 20% in a day, but the probability of a US Treasury default is basically negligible. This determines that the principal security of such products is far higher than any crypto-native asset.
The second logic is that the yield is transparent and predictable. Currently, the seven-day average yield for major tokenized treasury products is around 3.4%-4.8%. Although much lower than the peak periods of DeFi mining, the advantage lies in stability. This yield is directly linked to the Federal Reserve's benchmark interest rate – when the benchmark rate is maintained in the 3.5%-3.75% range, treasury product yields fluctuate within this range. You won't get rich overnight, but you also won't wake up to find your yield has dropped to zero.
On a side note, tokenized treasuries are becoming the "new favorite" of stablecoin issuers. The GENIUS Act requires stablecoin issuers to hold high-quality liquid assets as reserves, and tokenized treasuries perfectly meet this condition. This means institutional-level demand is just beginning to be unleashed.
How to Choose Among Mainstream Products? A table shows the differences
With so many tokenized treasury products on the market, how do you choose?
The table below outlines the mainstream products and their characteristics as of June 2026.
| Product Name | Issuer | Scale (Approx.) | Features |
| USYC | Circle | $3 Billion | Dominant on BNB Chain, mainly used as institutional trading collateral |
| BUIDL | BlackRock | $2.58 Billion | Strong compliance, widely adopted by DeFi protocols |
| USDY/OUSG | Ondo Finance | Not separately disclosed | Native crypto project, high flexibility |
| BENJI | Franklin Templeton | Not separately disclosed | Lowest management fee (0.15%) |
| JLTXX | JPMorgan Chase | New Application | Specifically designed for stablecoin reserves |
(Data source: rwa.xyz / Gate.io as of May-June 2026)
From a usage scenario perspective, the positioning of different products is actually quite different. About 94% of USYC's supply is concentrated on BNB Chain, mainly used for off-chain collateral by institutional traders. BUIDL is held on a large scale by DeFi protocols like Ethena's USDtb and Ondo's OUSG, serving as underlying reserve assets.
For regular users, the main points to focus on are three: yield, management fee, and redemption mechanism. In terms of yield, after fees, it's currently in the 3.5%-5.25% range. The lowest management fee is Franklin Templeton's BENJI at only 0.15%. Regarding the redemption mechanism, the efficiency varies greatly between different products, so it's advisable to confirm this clearly before investing.
How Can Regular Players Participate? Three paths and one reminder
Since this track is reliable, how do you get on board?
Path One: Centralized Exchange Entry. Some licensed exchanges have already set up RWA zones. You can directly use USDT or USDC to subscribe to tokenized treasury shares, and the platform will automatically handle the distribution of yields. This is the most user-friendly method for beginners, and the operation process is basically the same as buying coins.
Path Two: Direct Subscription via Decentralized Protocols. On platforms like Ondo Finance, you can complete subscriptions and redemptions through smart contracts. The advantage is flexibility; after holding the tokens, you can further use them in DeFi portfolio strategies. The disadvantage is a slightly higher operational threshold, requiring familiarity with wallet interactions.
Path Three: Indirect Holding via Yield-Bearing Stablecoins. Products like Ethena's sUSDe and Ondo's OUSG have tokenized treasuries as their underlying asset. By holding these stablecoins, you indirectly gain exposure to treasury yields. This method is the simplest, but the yield will be slightly lower than holding directly.
Reference steps (using a centralized exchange as an example):
- 1. Log in to your OKX or Binance account and complete basic identity verification.
- 2. Deposit USDT or USDC into your trading account.
- 3. Go to "Earn" or "RWA Zone" to view available tokenized treasury products for subscription.
- 4. Compare yields, management fees, and redemption cycles, and choose a suitable product.
- 5. Enter the subscription amount, confirm and hold, with yields distributed automatically.
One reminder: Not all projects labeled "RWA" are reliable. Over 70% of tokenized assets on the market have the lowest level of on-chain nativity – simply put, they just moved the ledger onto the chain without releasing true composability value. It's recommended to prioritize products issued by top institutions (BlackRock, Circle, Franklin Templeton, etc.) and avoid unknown small projects.
A Structural Change Worth Watching
Finally, let's discuss a slightly deeper observation that might be helpful for advanced users.
A report by a16z in May 2026 pointed out that currently over 70% of tokenized assets are just "moving the ledger onto the chain," with only about 5% of bond tokens actually circulating in DeFi protocols. What does this mean? It means most tokenized assets are still in the first stage of "tokenization," far from the second stage of "composability."
But the opportunity lies here. As settlement layer infrastructure (like Euler v2, RedStone Settle) gradually matures, the scenario of using tokenized treasuries as DeFi collateral will be truly activated. Once the idle $28 billion in tokenized RWA assets starts flowing, the capital efficiency of the entire track will significantly improve.
For regular players, this means that allocating to tokenized treasuries now is somewhat like allocating to DeFi in 2019 – the infrastructure isn't fully mature yet, but the direction is clear. Stay tuned and wait for the wind to blow.
If you plan to start building a position in tokenized treasuries, or want to start with mainstream exchanges, I personally use OKX and Binance long-term. Both are relatively stable in terms of RWA product access and stablecoin trading experience, and new user registration can also enjoy some fee discounts:
A leading global cryptocurrency platform,suitable for both beginners and experienced traders.
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Investment involves risk. Although tokenized treasuries are currently the most stable direction in RWA, there are also risks such as smart contract risks and compliance policy changes. It is recommended to start with a small amount, familiarize yourself with the product mechanism, and then gradually increase your allocation.
FAQ - Frequently Asked Questions
1. What is the difference between tokenized treasuries and buying US Treasuries directly?
Buying treasuries directly requires a traditional brokerage account, fund transfers usually take T+1 or T+2, and they cannot be integrated into the DeFi ecosystem. Tokenized treasuries can be subscribed to using stablecoins, traded 24/7, and the tokens held can be used as collateral for lending or liquidity mining.
2. Is there a risk of principal loss with tokenized treasuries?
The underlying asset is US Treasuries, which carry extremely low credit risk. However, investors still face risks from smart contract vulnerabilities, platform operational risks, and the risk of the secondary market trading price deviating from the net asset value.
3. Will the yield change?
Yes. The yield of tokenized treasuries is linked to the Federal Reserve's benchmark interest rate. If the Fed cuts rates, yields will decrease accordingly, and vice versa.
4. What is the minimum amount needed to participate?
Minimums vary by product. Some protocols support investments starting from $1, while some institutional-grade products have minimum subscription amounts of $5,000 or even $5 million. For regular users, choose retail-friendly products.
5. Which has higher yield, tokenized treasuries or DeFi lending?
Under normal circumstances, tokenized treasury yields are in the 3.5%-5.25% range, and DeFi lending is in the 3%-5.5% range, making them quite close. However, during periods of high utilization, DeFi lending rates can spike to double digits, offering higher yields but also greater volatility.
