Onchain Treasuries Hit 13 Billion and Shift The Market Toward Real Utility

Tokenized U.S. Treasuries rose from $8B to $13.74B, as markets shifted toward collateral use, Onchain lending, and trading utility.

Onchain Treasuries have moved past $13 billion, and the market is entering a new stage.

The focus is no longer only on tokenizing assets. It is now shifting toward how those assets can be used in active financial markets.

That change is drawing attention from crypto firms, asset managers, and trading platforms.

Tokenized Treasury Market Cap Rises Sharply

Tokenized U.S. Treasuries market cap is up from about $8 billion to about $13.5 billion this year.

According to the figures cited, the market recently reached about $13.74 billion.

As a result, tokenized Treasuries are now one of the largest real-world asset categories in crypto.

This growth matters because Treasuries are often used as collateral. So, a larger market can support more activity across Onchain lending platforms.

It also gives digital markets access to assets linked to short-term government debt.

At the same time, investors are looking at these products as cash equivalents with added flexibility.

They can offer yield, and they can fit into blockchain-based systems. That mix has helped the category grow faster this year.

For the market, the rise above $13 billion marks a turning point. The early question was whether these assets could move Onchain.

Now the bigger question is how they can be used once they are there.

Market Focus Turns From Issuance to Utility

The next phase is centered on utility. In simple terms, that means tokenized Treasury products must do more than sit in wallets.

They need to support lending, trading, and treasury management in live market settings.

Franklin Templeton has described tokenization as a way to create “new utility and new use cases.” That view matches the current market shift.

The value now comes from use, and not only from digital issuance. Several products have helped shape this market. Franklin Templeton’s OnChain U.S.

Government Money Fund invests at least 99.5% of assets in government securities, cash, and repos.

BlackRock’s BUIDL and Ondo’s USDY have also become key names in this area.

Because of that, market attention is moving toward practical uses. Firms want collateral that can move faster and stay productive.

They also want better ways to deploy capital without losing control over assets.

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Collateral Use Expands Across Crypto Platforms

Recent deals show that this shift is already taking place. Standard Chartered and OKX announced a collateral mirroring programme with Franklin Templeton.

Under that setup, institutional clients can use crypto and tokenized money market funds as off-exchange collateral.

That matters because it shows tokenized Treasury exposure moving into active market use.

Instead of passive holding, firms can use these assets in trading workflows. As a result, capital can stay more efficient while remaining tied to lower-risk instruments.

BounceBit is also building around this model. The company first added Ondo’s USDY as its tokenized real-world asset product.

Later, it expanded Prime to source tokenized cash equivalents from Franklin Templeton’s Benji and BlackRock’s BUIDL through Securitize.

BounceBit says its platform connects regulated custody with Onchain execution.

Client assets are held with Standard Chartered and mirrored to trading venues through an off-exchange flow.

Meanwhile, Circle’s acquisition of Hashnote added USYC to its platform and supported its push into yield-bearing collateral.

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