Over $1 billion in U.S. Treasury bonds are tokenized on the Ethereum, Polygon, Solana, Avalanche, Base, and Stellar blockchains. The largest issuers of tokenized government bond funds are Franklin Templeton and BlackRock, which account for about half of the market’s volume.
According to Dune data, the market capitalization of tokenized government bonds in the U.S. is $1.07 billion. The market includes 17 investment products based on government bond funds.
Among the most active funds in the market are:
- Franklin Templeton’s BENJI launched on Polygon and Stellar 11 months ago. The product is based on the Franklin OnChain U.S. Government Money Fund (FOBXX), whose investment portfolio contains $360.2 million in Treasury bonds.
- The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) launched on the Ethereum blockchain on March 20. The fund has a market cap of $244.8 million, and four transactions worth $95 million made it the second-largest fund in just one week of existence, according to Etherscan data.
- USDY by iShares, launched on the Ethereum network and powered by the Ondo Finance protocol. The fund has a capitalization of $55.4 million.
Projects such as Ondo Finance, Backed Finance, Matrixdock, Maple Finance, Swarm, and others raised more than $300 million by tokenizing U.S. Treasury bonds.
In 2023, the market capitalization of tokenized U.S. Treasury bonds grew by 641% and was $861 million at the beginning of 2024.
