Tokenized Treasuries have climbed to a capitalization of $8.63 billion as traders and banks begin using them for repo market financing.
Tokenized U.S. Treasuries, the largest class of real-world assets (RWA) after stablecoins, have entered a new phase. Tokenized money-market funds (MMFs), which pool cash into short-term U.S. government securities, are shifting from passive yield to collateral for trading, credit and repo transactions.
As of late October, the total market cap of tokenized Treasuries reached $8.6 billion, up from $7.4 billion in mid-September. The increase was led by BlackRock’s BUIDL, which reached about $2.85 billion, followed by Circle’s USYC at $866 million and Franklin Templeton’s BENJI at $865 million. Fidelity’s newly launched tokenized MMF also showed impressive growth and rose to $232 million.
Digital representations of Treasury bills are starting to move through the same settlement and margin systems that support traditional collateral markets. The first practical test of fund-as-collateral came in June, when BUIDL was approved on Crypto.com and Deribit. By late September, Bybit extended the concept, announcing it would accept QCDT, a DFSA-approved tokenized money-market fund backed by U.S. Treasuries, as collateral. The token can be posted by professional clients on the exchange’s trading platform in place of cash or stablecoins. This allows them to earn the underlying yield from the Treasury fund and maintain trading exposure.
