Ondo

Franklin

BlackRock

<p>The tokenized U.S. Treasuries market continues to expand rapidly, with BlackRock’s BUIDL fund maintaining a commanding 33% market share, according to data from RWA.xyz. However, competitors including Franklin Templeton, Circle, and Ondo Finance are accelerating growth, suggesting that the sector may be entering a new phase of diversification.</p>
<h3 id="market-overview">Market Overview</h3>
<p>BlackRock’s $2.85 billion BUIDL fund remains the clear leader in the tokenized Treasury market, reflecting institutional confidence in the asset manager’s on-chain strategy. But data shows that other issuers are quickly closing the gap.</p>
<ul>
 <li>Circle now holds $866.6 million in tokenized Treasuries, a 19.5% increase over the last 30 days.</li>
 <li>Franklin Templeton follows closely with $852.2 million, rising nearly 18.8% in the same period.</li>
 <li>Ondo Finance’s combined products, Ondo I and Ondo USDY,&nbsp;collectively manage nearly $1.48 billion, further underscoring growing institutional adoption.</li>
</ul>
<p>Rounding out the top 10 are WisdomTree, Superstate, Anemoy, Fidelity Investments, and Treasury Bills Ltd, showing that both traditional financial institutions and crypto-native firms are now actively competing in this market segment.</p>
<p><img src="https://www.ethnews.com/wp-content/uploads/2025/11/G4-gMwZXsAAC38D.jpeg" alt="" width="1200" height="895"></p>
<h3 id="access-remains-restricted">Access Remains Restricted</h3>
<p>Despite impressive growth, access to tokenized Treasuries remains largely limited. Only Qualified Purchasers are typically eligible to invest directly, and secondary markets face structural barriers such as:</p>
<ul>
 <li>Haircuts of up to 10% when tokenized Treasuries are used as collateral, compared to around 2% in traditional repo markets.</li>
 <li>Redemption delays that adhere to legacy settlement cycles, reducing the real-time efficiency tokenization promises.</li>
</ul>
<p>These factors currently make tokenized Treasuries less flexible than their traditional counterparts, though proponents argue that as infrastructure matures, these inefficiencies will narrow.</p>
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<h3 id="the-bigger-picture">The Bigger Picture</h3>
<p>The tokenization of real-world assets (RWAs), particularly U.S. Treasuries,&nbsp;is widely regarded as one of the most promising applications of blockchain technology. Global demand for yield-bearing, on-chain instruments has surged throughout 2025, as institutions seek transparent and programmable fixed-income alternatives.</p>
<p>As on-chain Treasury markets approach $9 billion in total capitalization, analysts expect broader access and regulatory clarity to trigger the next wave of growth, potentially positioning RWAs as a new standard for digital asset-backed liquidity.</p>
<p>The post <a href="https://www.ethnews.com/blackrock-dominates-tokenized-treasuries-but-competitors-are-gaining-ground/" rel="noopener noreferrer nofollow">BlackRock Dominates Tokenized Treasuries, But Competitors Are Gaining Ground</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.</p>

BlackRock Dominates Tokenized Treasuries, But Competitors Are Gaining Ground

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