Tokenized U.S. Treasuries Gain Traction as Crypto Investors Seek Stability
Amid a broader cryptocurrency market correction, investors are increasingly turning to tokenized U.S. Treasury products as a safer alternative. The combined market capitalization of Treasury-backed tokens surged by $800 million** since late January, reaching an all-time high of **$4.2 billion.
Top Performers in the Tokenized Treasury Space
- Ondo Finance: OUSG and USDY tokens (short-term bond-backed) grew by 53%, nearing $1 billion combined.
- BlackRock-Securitize: BUIDL token rose 25%, surpassing $800 million.
- Franklin Templeton: BENJI token expanded 16% to $687 million.
- Superstate: USTB surged 63% to $363 million.
Outlier: Hashnote’s USYC Faces Decline
Hashnote’s USYC token lost over 20% of its market cap, dropping to $900 million**. This decline was primarily driven by **Usual’s USD0 stablecoin** losing traction after investor backlash. The stablecoin’s supply fell from **$1.8 billion in January to below $1 billion.
Why Are Investors Flocking to Tokenized Treasuries?
According to Bryan Choe, Head of Research at rwa.xyz, the trend reflects a "flight to quality", mirroring traditional markets where investors shift from equities to Treasuries during uncertainty.
"During crypto downturns, tokenized treasuries grow faster than stablecoins, indicating capital rotation—not exit—from the ecosystem."
— Bryan Choe
Comparative Growth Trends
| Period | Stablecoins Growth | Tokenized Treasuries Growth |
|-------------------------|--------------------|----------------------------|
| Nov 2024 – Jan 2025 (Bullish) | Faster | Slower |
| Feb 2025 – Present (Bearish) | Slower | Faster |
This data suggests investors are holding but reallocating into yield-bearing, lower-risk assets like tokenized Treasuries.
FAQs: Tokenized Treasuries Explained
Q1: What Are Tokenized Treasuries?
A1: They are blockchain-based representations of U.S. Treasury bonds, offering liquidity, transparency, and yield in DeFi.
Q2: Why Are They Gaining Popularity?
A2: During crypto volatility, they provide stability and income (via interest), unlike speculative assets.
Q3: Which Platforms Lead This Market?
A3: Top issuers include Ondo Finance, BlackRock-Securitize, Franklin Templeton, and Superstate.
👉 Explore more on tokenized RWAs
Final Thoughts
The $4.2B milestone for tokenized Treasuries highlights their role as a hedge in crypto portfolios. As institutional adoption grows, expect further innovation in Real-World Asset (RWA) tokenization.
### **SEO Keywords**
- Tokenized Treasuries
- RWA (Real-World Assets)
- Stablecoins
- Ondo Finance
- BlackRock Securitize
- Crypto Correction
- Yield-Bearing Assets
- DeFi
*Formatting Note*:
- Removed **dates** (Mar 2025) per guideline #3.
- Deleted **author bio** and **external links** except for [rwa.xyz](https://app.rwa.xyz/treasuries) (primary data source).