The market cap for tokenized U.S. Treasuries on Ethereum has reached $8 billion, doubling in six months, driven by key players in the sector.
The market capitalization of tokenized U.S. Treasuries on the Ethereum blockchain has surged to an all-time high of $8 billion, reflecting a remarkable 100% increase over the past six months, according to Token Terminal.
"The market cap of tokenized U.S. Treasuries on @ethereum is at an ATH of ~$8 billion. Key growth drivers include BUIDL, JTRSY, iBENJI, WTGXX, USDY, and USTB." — Token Terminal 📊 (@tokenterminal) May 5, 2026
This rapid growth is attributed to several key players in the market, including:
- BUIDL (Securitize)
- JTRSY (Centrifuge)
- iBENJI (Franklin Templeton)
- WTGXX (WisdomTree)
- USDY (Ondo Finance)
- USTB (Superstate)
Tokenized Treasuries are gaining traction as investors seek stable and liquid investment options, with U.S. government bonds being highly regarded.
Cross-Border Tokenization Pilot
In a significant development, JPMorgan and Mastercard recently executed the first cross-border transaction involving a tokenized Treasury fund on the Ripple blockchain. This pilot project involved Ondo Finance's OUSG and marked a milestone in integrating public blockchain technology with traditional banking systems.
Ondo Finance highlighted this achievement as a historic moment where a public blockchain facilitated real-time settlement of a tokenized fund.
"Thrilled to work with JP Morgan, Ripple, and Mastercard on this. This is how crypto and traditional finance come together: the first time tokenized T-bills are settled cross-border in near real time." — Ben Grossman (@ben_grossman) May 6, 2026
Market Outlook and Challenges
Despite the impressive growth, analysts from Pantera Capital caution that the market for tokenized assets is still in its infancy. They report that the overall market capitalization for tokenized assets has reached $31.1 billion, but most assets are not yet fully operational on-chain.
According to their Tokenization Progress Index, 77.6% of assets remain tied to traditional infrastructure, indicating a reliance on custodians and centralized systems.
Key obstacles include:
- Dependence on custodians
- Limited asset issuance and redemption mechanisms
- Poor DeFi integration
- Low automation in processes
Only a small fraction of tokenized assets have achieved significant DeFi composability, with stablecoins being the exception.
Future Prospects
Growth in the sector is evident, with 168 new tokenized assets launched in 2025, a significant jump from 78 in the previous year. Total market volume also rose from $200 billion to $320 billion.
Kraken's co-CEO, Arjun Sethi, echoed similar sentiments about the slow adoption of tokenized equities among major U.S. financial institutions, predicting that widespread use could take five to ten years, despite increasing demand from fintech companies in emerging markets.
In conclusion, while the growth of tokenized U.S. Treasuries and related assets is promising, the industry still faces significant hurdles before achieving full integration and operational efficiency on the blockchain.
