Tokenized U.S. Treasury products on Ethereum reached $8 billion in May 2026, doubling from $4 billion in November 2025 as Wall Street institutions expanded on-chain infrastructure. BlackRock's BUIDL fund holds $2.63 billion, Ondo Finance's USDY token holds $2.14 billion, and Franklin Templeton's iBENJI holds $2.1 billion. The tokens settle in seconds versus one to two business days for traditional bonds and yield 5-10% annually.
Tokenized Treasury market growth
- ▪BlackRock, Franklin Templeton, Fidelity, and WisdomTree doubled the U.S. government bond market on Ethereum to $8 billion in six months
- ▪The tokenized U.S. Treasuries market on Ethereum increased from approximately $4 billion in November 2025 to $8 billion in May 2026
- ▪The tokenized U.S. Treasuries market on Ethereum grew 100% in six months between November 2025 and May 2026
Tokenized Treasury mechanics
- ▪Traditional Treasury bonds settle in one to two business days
- ▪Tokenized treasuries settle in seconds at any time of day and any day of the week, including weekends and holidays
- ▪Users do not need a brokerage account, a U.S. bank account, or to be in the United States to hold a tokenized Treasury
- ▪Users can program tokenized Treasuries to automatically pay yield into a DeFi lending pool
Major institutional products
- ▪BlackRock's BUIDL fund holds approximately $2.63 billion in tokenized Treasury value
- ▪Centrifuge's JTRSY holds $1.14 billion in tokenized Treasury value
- ▪Ondo Finance's USDY token holds roughly $2.14 billion in tokenized Treasury value
- ▪Franklin Templeton's iBENJI holds around $2.1 billion in tokenized Treasury value
- ▪WisdomTree's WTGXX holds $978 million in tokenized Treasury value
Ethereum blockchain dominance
- ▪All major tokenized Treasury products either run on Ethereum or use Ethereum as their primary chain
- ▪Ethereum holds $8 billion in tokenized Treasuries as of May 2026
- ▪Solana, Stellar, and XRP Ledger each hold under $1 billion in tokenized Treasuries as of May 2026
Growth drivers
- ▪The price of Ethereum increased from $1,748 in February 2026 to around $2,464 in May 2026
- ▪Ethereum's price gained more than 40% between February 2026 and May 2026
- ▪Tokenized Treasury tokens yielded around 5% to 10% per year as of May 2026
Future risks
- ▪The U.S. has not passed clear laws on tokenized securities as of May 2026
- ▪If U.S. Federal Reserve cuts interest rates sharply, money might flow away from tokenized Treasuries
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