Tokenized US Treasurys rise by over $1B since start of 2026

CoinTelegraph

by Vince Quill

February 25, 2026

AI-Generated Deep Dive Summary

The tokenized US Treasury market has experienced significant growth despite ongoing macroeconomic challenges. Starting 2025 with a market capitalization under $4 billion, the sector has surged by over $1 billion since the beginning of 2026. By early January 2026, its value had climbed from $8.9 billion to more than $10.8 billion at the time of reporting, according to data from RWA.xyz. This upward trajectory highlights the growing appeal of tokenized US Treasurys, which are digital representations of government debt instruments on blockchain platforms. Tokenized US Treasurys represent real-world assets (RWAs) within the cryptocurrency and blockchain space, offering investors a unique way to hold and trade government-backed securities in a decentralized environment. This form of investment combines the stability of traditional government bonds with the innovation of blockchain technology, attracting both institutional players and retail investors. The rise of tokenized Treasurys aligns with broader trends in digitization and financial innovation, particularly within the decentralized finance (DeFi) ecosystem. The growth of this market is notable amid concerns about U.S. national debt levels and economic uncertainty. Despite these challenges, the increasing adoption of blockchain technology has positioned tokenized Treasurys as a viable alternative for diversification and yield generation in the crypto space. This trend underscores the growing integration of traditional financial instruments into decentralized systems, potentially opening new avenues for investors seeking both security and liquidity. For readers interested in cryptocurrency and blockchain, this development matters because it demonstrates the expanding use cases for digital assets

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Originally published on CoinTelegraph on 2/25/2026