Tokenized Treasuries Hit Record Market Cap of $4.2 Billion as Crypto Market Correction Fuels Their Rise

Among the major issuers, Ondo Finance, BlackRock-Securitize and Superstate showed the biggest gains, while USYC Hashnote showed a decline.

Christian Sandor | Edited by Steven Alpher Updated 14 Mar 2025 19:45 UTC Published 13 Mar 2025 18:39 UTC

Key points:

• Amid the overall market decline, digital asset investors have turned to tokenized US Treasury products, pushing their combined market cap to a record $4.2 billion.
• The asset class has added $800 million to its market value since the end of January, with Ondo Finance, BlackRock's BUIDL, Franklin Templeton's BENJI and Superstate's USTB all rising over the past month, while Hashnote's USYC has seen declines.
• As Brian Chow, head of research at rwa.xyz, noted, the rise of tokenized Treasuries, which outpaced stablecoins during the crypto downturn, is perceived as a “flight to quality” as investors switch to safer, more profitable assets.

In recent weeks, as cryptocurrencies have suffered a significant market correction, digital asset investors have sought protection in tokenized US Treasury products.

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The total market cap of treasury-backed tokens has increased by $800 million since the end of January, reaching a new all-time high of $4.2 billion on Wednesday, according to data from rwa.xyz.

Real asset platform Ondo Finance’s (ONDO) short-term bond-backed tokens OUSG and USDY have nearly reached $1 billion in total, up 53% from their market value in the past month. BUIDL, a partnership between BlackRock and tokenization firm Securitize, has surged 25% to over $800 million in the same period. Franklin Templeton’s BENJI token has risen 16% to $687 million, while USB Superstate has reached $363 million, up more than 63%.

A notable exception was Hashnote’s USYC, which lost more than 20% of its market cap to $900 million, largely due to the fall of DeFi protocol Usual after a backlash from investors. The token is the key backing asset of Usual’s USD0 stablecoin, whose supply has fallen below $1 billion from a peak of $1.8 billion in January.

“We believe the rise in tokenized Treasury market cap during the recent crypto downturn indicates a shift to quality, similar to traditional investors shifting from stocks to U.S. Treasuries amid economic uncertainty,” Brian Chow, head of research at rwa.xyz, told CoinDesk.

Chow based his analysis on a comparison of the growth in market capitalization of tokenized Treasury bonds and stablecoins between November and January, when crypto markets were rising, and February, when prices began to correct.

During the recent bear market, tokenized Treasuries have grown faster than stablecoins, unlike during the bull market,

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