U.S. Treasuries Tokenized Surpass $10B as Banks and Exchanges Move On‑Chain
Tokenized U.S. Treasuries have exceeded $10 billion, marking a major shift from pilot projects to production deployments across major financial institutions. The broader tokenized real‑world asset market is now around $25 billion (excluding stablecoins). Key moves include JPMorgan Asset Management launching a tokenized money market fund (My OnChain Net Yield, MONY) and Kinexys announcing JPM Coin issuance on Canton; DTCC enabling tokenization of DTC‑custodied Treasuries on the Canton Network; Société Générale issuing a digital bond purchased by DRW; and Citi expanding token services and euro transactions. Capital markets infrastructure providers are building supporting rails — NYSE announced an on‑chain settlement platform, LSEG launched LSEG DiSH for programmable settlement, BNY is developing on‑chain client deposit entries, and Lloyds completed the UK’s first gilt purchase using tokenized deposits. Industry observers and FXC Intelligence now forecast tokenized Treasuries could reach $100 billion by end‑2026 as pilots move to production, faster settlements and 24/7 liquidity become operational, and institutional adoption accelerates. For traders, the development implies growing institutional on‑chain liquidity, potential new venues for yield and stable collateral, and increased integration between traditional markets and crypto infrastructure.
Bullish
This development is bullish because it signals substantial institutional adoption of tokenized securities and the buildout of on‑chain settlement infrastructure. Key custodians and exchanges (DTCC, NYSE, LSEG, BNY) and major banks (JPMorgan, Citi, Société Générale) moving real assets on‑chain reduces settlement friction, increases on‑chain liquidity, and creates new venues for institutional capital to enter crypto rails. Historically, institutional infrastructure rollouts (e.g., ETF approvals and custody integrations) have led to sustained inflows and higher market confidence. Short‑term effects: positive sentiment and increased demand for on‑chain collateral and yield products may lift tokenized‑asset-related tokens and stablecoin usage; volatility may spike as traders reposition. Long‑term effects: deeper institutional liquidity, narrower settlement windows, and broader product availability (tokenized T‑bills, funds) should improve market stability and expand capital inflows from traditional finance into crypto ecosystems. Risks remain — regulatory setbacks or interoperability failures could reverse sentiment — but current coordinated progress across incumbents points to a net positive for market growth and on‑chain activity.