Tokenized Treasuries Explode 80% to $7.4 Billion: RWA.xyz Report

Hang on to your hats, folks! The world of crypto just got a major shake-up. Assets in tokenized Treasury and money market products have skyrocketed 80% to a whopping $7.4 billion, according to the latest bombshell report from RWA.xyz. And guess what? This surge is putting stablecoin issuers on the edge of their seats!

On Monday, the Financial Times dropped the news, and it's got everyone buzzing. RWA.xyz's analysis shows that tokenized Treasury products have been on fire in 2025, jumping to $7.4 billion. Investors and funds are ditching stablecoins faster than you can say "yield," chasing after these high-reward alternatives.

We're talking about Treasury funds that are minting their own tokens and even tokenized U.S. government bonds. Big names like BlackRock, Franklin Templeton, and Janus Henderson are seeing their holdings triple—can you believe it?

So, why the mad rush to this asset class? It's simple: while stablecoins sit there like a lump, not giving you any yield, tokenized Treasuries are out here making money move. Traders are jumping ship to these more lucrative options faster than you can blink.

And let's not forget, Treasury bond yields are tied to interest rates, which are still sky-high thanks to the Federal Reserve's inflation worries. Right now, 20-year U.S. Treasuries are yielding a sweet 4.893%. Cha-ching!

Tokenized Treasuries Spell Bad News for Stablecoin Issuers

For heavyweights like Circle and Tether, this shift is a nightmare. They've been raking in dough by holding Treasuries as collateral and pocketing the interest. But if the exodus from stablecoins to tokenized Treasuries keeps up, they could kiss that sweet revenue goodbye.

Not only that, but they might have to start offering yields on their own stablecoins just to stay in the game. Talk about pressure!

But hold up—despite the frenzy over tokenized Treasuries, stablecoins aren't going down without a fight. Their supply has been climbing steadily since January 2025, jumping from $2.5 billion to a staggering $255 billion by July. It's a wild ride, and we're all buckled in for what's next!