The tokenized US Securities market recently set a historic record at $7.45 billion on‑chain, surpassing the peak recorded last July ($7.42 billion), according to data from RWA.xyz. The data considered is updated as of September 12, 2025.
Ethereum accounts for approximately $5.2 billion (≈70% of the total), reinforcing its role as a reference infrastructure for near-instant settlements and 24/7 operations.
The scope of benefits and risks is consistent with the findings in the Bank for International Settlements report from October 17, 2024, which analyzes the opportunities and impacts of tokenization on markets and payment infrastructures: Bank for International Settlements (BIS).
Indeed, the growth—fueled by large asset managers and regulated solutions—expands liquidity and programmability; however, concrete challenges remain in terms of compliance, custody, and oversight.
According to the data collected by our research team on the RWA market and on-chain analyses, the concentration on Ethereum has consolidated over the last 12 months, and primary volumes show spikes related to the launch of institutional products.
Industry analysts also note that institutional flows have helped bring additional liquidity, but with stricter due diligence and reporting requirements compared to many traditional crypto products.
What are Tokenized US Securities
Tokenized US bonds are digital representations on blockchain of US Treasury Securities (T‑Bills, T‑Notes) or shares of funds holding them, falling into the category of RWA (Real‑World Assets).
In this context, fractionalized and continuously tradable instruments lower entry barriers and compress settlement times compared to traditional circuits.
How they work
- “Direct” model: the token reflects the economic ownership of the T‑Bills/T‑Notes held in custody by a regulated operator.
- “Fund” model: the token represents shares of a vehicle (often offshore) that invests in Treasuries and cash equivalents.
- Infrastructure: standard ERC‑20 on Ethereum or permissioned networks with KYC/AML access (see operational guides for onboarding), with transfers governed by rules integrated into the smart contract.
- Yield: interest credited on-chain (e.g., through rebasing mechanisms or periodic distributions) based on the underlying portfolio.
Why They Are Growing: Recent Drivers
The combination of high real rates, market fragmentation, and the maturity of on‑chain infrastructures has contributed to the increasing adoption of these instruments.
- Global access: international investors, including retail ones, can gain exposure in minimum denominations and with digital onboarding.
- Disintermediation: reduction of operational frictions (documentation, cut-off, T+2) thanks to the use of smart contracts to automate flows.
- Brand effect: products launched by major managers like BlackRock: the BUIDL token surpasses one billion dollars and RWA token also coming from Fidelity: here’s what to expect have catalyzed trust and volumes.
- Composability: integration with DeFi, on-chain management of stablecoins for treasury management, and payment infrastructures.
Practical Uses and Advantages
The instant settlement – or almost – made possible by the blockchain reduces counterparty risks and shortens escrow times.
It should be noted that tokenized Treasuries naturally fit into collateral, cash management, and market-making strategies in an on-chain environment, giving a programmable dimension to the assets.
Main Advantages
- Fractional ownership: possibility of access with minimum denominations (for example, products like USTBL offer tickets from $1).
- Flow Programming: enabling collateralized loans, yield automation, and atomic swaps.
- Transparency: complete on-chain traceability of issuances and transfers, with more frequent reporting compared to traditional cycles.
- 24/7 Operations: elimination of constraints related to time zones or schedules, with liquidity aligned to crypto flows.
Operational Example: From Trade to Settlement
- T0, minute 0: the investor sends stablecoin to the issuer’s contract.
- T0, minute 1‑2: the smart contract verifies the requirements (whitelisting) and issues the tokens.
- T0, minute 3: the tokens are transferable and can be used as collateral in DeFi environments, eliminating the traditional T+2.
Risks and Points of Attention
Despite the intrinsic solidity of Treasuries, technological and regulatory risks remain that deserve careful evaluation.
- Regulatory uncertainty: interpretative differences between various jurisdictions and constant monitoring by authorities such as the SEC and international bodies.
- Counterparty risk: the roles of custodians, fund administrators, and issuers often operate within legal structures, sometimes offshore.
- Smart contract risk: possibility of bugs, vulnerabilities in the code, and issues related to governance or the management of pauses/upgrades.
- Macro factors: rate decisions, US fiscal policies, and de-dollarization trends that can influence returns.
Impact on Markets and Key Players
BlackRock has expanded adoption with the BUIDL fund, an on-chain liquidity fund that credits daily interest to whitelisted wallets on Ethereum, reaching assets of over $2.2 billion.
Fidelity has launched FDIT, a token that replicates the performance of the FYOXX fund, recently operational, with a portfolio entirely composed of Treasuries and cash liquidity. On the regulated exchange front, Bitfinex Securities has recently listed USTBL, offering exposure to T-Bills with reduced ticket sizes, starting from $1.
Instant Settlement: State of the Art and Limitations
The current state of the art allows for near‑instant settlements on public ledgers; however, the timing varies based on the nature of the network and the issuance/redemption policies adopted by the issuer.
That said, there are still limitations related to onboarding (KYC), banking hours for fiat fundraising, and compliance constraints in certain jurisdictions. Consequently, although the experience is already faster and programmable compared to traditional channels, the value chain is not yet fully on‑chain.
Outlook
The tokenization of US Securities is rapidly establishing itself as a pillar of real on-chain assets.
The offering continues to expand, costs are decreasing, and integration with programmable finance is accelerating. For sustainable adoption, it will be crucial to define common standards on reporting, custody, interoperability, and clear guidelines on product classification and distribution.