Tokenisation of Real-World Assets Drives Growth in Digital Fixed Income and Reshapes Traditional Finance

Tokenisation—the process of representing real-world assets like US Treasuries and real estate as blockchain-based digital tokens—continues to gain momentum as a transformative force in traditional finance. The market capitalization of tokenised US Treasuries has rapidly expanded, increasing from $5.12 billion to $7 billion between April and May 2025, underscoring robust investor demand for secure, blockchain-linked digital assets and reflecting a 37% growth in just two months. These tokenised bonds combine the trusted features of fixed income, such as principal and fixed maturity, with blockchain’s promises of transparency, instant settlement, and significantly lower entry thresholds for global and retail investors. This evolution is not only attracting sophisticated traders but also opening access for smaller investors and issuers in emerging markets. The trend extends beyond governments to private issuers, offering attractive returns and sub-five-year maturities, often with up to 8–15% yields. Key jurisdictions like El Salvador and Kazakhstan are instituting supportive regulatory frameworks, while industry voices are calling for the US SEC to establish clear guidelines. Despite lingering skepticism among legacy financial players, consulting firms like McKinsey forecast the tokenised asset market could reach $2 trillion by 2030, signaling major structural changes ahead for capital markets. Crypto traders should monitor these developments closely, as blockchain-based securities promise enhanced liquidity, automation via smart contracts, and self-custody, all while challenging institutional incumbents and broadening the role of digital assets in the global economy.