U.S. Treasuries Go Crypto: How the $10 Billion Milestone Is Rewriting the Rules of Government Debt

TLDR:

• Tokenized U.S. Treasuries crossed $10 billion in 2026, outpacing projections and leading the $25 billion RWA market.
• SEC-approved DTCC deployment of tokenized Treasuries on Canton Network signals full regulatory backing for on-chain government debt.
• JPMorgan’s “MONY” fund connects institutional stablecoin access directly to Ethereum-based U.S. Treasury yield products.
• NYSE and LSEG are racing to launch 24/7 on-chain trading platforms built around instant atomic settlement of Treasuries.

Tokenized U.S. Treasuries have crossed the $10 billion threshold in 2026, marking a major turning point for blockchain-based government securities.

This milestone places Treasuries at the center of the broader tokenized real-world asset market, which now sits above $25 billion excluding stablecoins.

Institutions that spent years testing the technology are now committing real capital at scale. With some analysts projecting the Treasury segment alone could reach $100 billion by year-end, the pace of growth is drawing serious attention across global financial markets.

Tokenized Treasuries Are Now Leading the Entire Real-World Asset Market

U.S. Treasuries have emerged as the dominant asset class within the tokenized real-world asset space. Their government backing, liquidity, and yield profile make them a natural fit for on-chain financial products.

Institutions managing large pools of capital are using tokenized Treasuries as a stable, yield-generating base layer in digital asset portfolios.

The Depository Trust & Clearing Corporation is actively deploying tokenized Treasuries on the Canton Network with SEC approval already in place.

As @subjectiveviews noted, this move confirms that regulators are no longer holding institutions back — they are actively clearing the runway. That regulatory posture is directly encouraging more capital to flow into Treasury-backed tokenized instruments.

The $10 billion figure is not a ceiling — it reflects where the market stands today amid an accelerating adoption curve.

Exchanges like NYSE and LSEG are simultaneously building 24/7 on-chain trading infrastructure with instant settlement capabilities.

Together, these developments are creating a continuous, liquid market for tokenized government securities that did not exist two years ago.

Major Banks Are Building Products Around Tokenized Treasury Infrastructure

JPMorgan’s launch of “MONY” in late 2025 brought tokenized money market exposure to institutional clients through an Ethereum-based fund.

The product offers stablecoin-compatible access to yields backed by short-duration government instruments, including Treasuries.

That move by one of the largest U.S. banks added significant credibility to Treasury tokenization as a viable institutional product category.

BNY Mellon, Citigroup, Lloyds, and Société Générale are also issuing tokenized deposits and digital bonds that interact with government securities markets.

Their collective participation shows that Treasury tokenization is no longer isolated to fintech experiments. These are established financial institutions reallocating operational resources toward blockchain-based settlement systems.

Ant International is separately advancing tokenized cross-border payment infrastructure built on global standards, which also channels demand toward stable tokenized assets like Treasuries.

@subjectiveviews described 2026 as “the consolidation year: pilots turning live, regulations clearing the path, shifting from experiments to core infrastructure.”

Faster settlement, atomic trading, and around-the-clock liquidity are now operational realities rather than future projections.

The $10 billion Treasury milestone is, by most measures, only the opening chapter of a much larger structural shift in how government debt is issued, traded, and held globally.

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