As of September 30, 2025, the capitalization of stablecoin approaches $280 billion, while the tokenized Treasuries amount to “a few billion” in AUM, as indicated by RWA.xyz. In this context, the push is driving real assets on‑chain out of the pilot phase and towards true operational scale.
In the last 24 months, our team has followed over twenty institutional tokenization projects, participating in implementation discussions with banks, asset managers, and infrastructure providers. According to analyses published by the World Economic Forum and McKinsey, institutional interest has grown rapidly: tokenized money market funds exceeded $1 billion in the first quarter of 2024, demonstrating the transition from proof-of-concept to commercial products. These practical observations confirm that between 2023 and 2025, adoption has accelerated, while remaining concentrated in specific liquidity pools.
In brief — key numbers 2025
- Stablecoin in circulation: ~$280 billion.
- Tokenized Treasuries: a few billion in AUM.
- Treasury yields exceeded 4% at certain times during the 2023–2025 period, according to data from the U.S. Treasury.
- US bank deposits: over $18 trillion (FRED).
- Global market of money market funds: ~$8 trillion (estimate Investment Company Institute).
- Outstanding U.S. Treasuries: approximately $20 trillion (SIFMA).
Tokenization of Assets: What It Is and How It Has Evolved
Tokenization involves representing securities, debt, or cash as native tokens on blockchain; it enables nearly instantaneous transfers, integration with smart contracts, and a new form of programmable collateralization. That said, its impact becomes most evident when assets enter interoperable systems.
The Three Waves
- 2009: Bitcoin demonstrates digital scarcity.
- 2015: Ethereum introduces smart contracts and paves the way for DeFi.
- Since 2020: stablecoin and tokenized real assets enter institutional use.
It is not simply about “digitalization”, but rather a change in architecture: assets become composable, verifiable on‑chain, and transferable in real-time, with compliance rules embedded directly into the contract. In fact, programmability shifts operational functions to the code level.
Three forces have aligned. First, the context of high rates has made low-risk products attractive, such as short-term Treasuries. Second, stablecoins have created a low-friction dollar bridge, with annual settlement volumes in the trillions. In this scenario, the demand for simple and real-time adjustable instruments has increased.
Third, the infrastructure has adapted: Ethereum, powered by layer-2 solutions, and high-throughput chains like Solana reduce latency and costs, enabling almost instant settlement. However, the choice of network remains a trade-off between performance and composability.
Network Infrastructure and Tokenization Stack
Until 2017, public rails were slow and costly for large institutions. Today, thanks to low-cost layer-2, regulated custody solutions, and on-chain identity (whitelisting), onboarding is much more streamlined. It should be noted that the standardization of flows also reduces operational errors.
- Networks: Ethereum and related layer-2 for composability; Solana for high throughput.
- Custody: integration with qualified custodians.
- Compliance: KYC/AML processes and transfer restriction on‑chain.
- Oracles and attestation: verifiable data for NAV and price updates.
How tokenization works, in practice
An issuer creates a token that represents an underlying asset (security, fund share, cash). The smart contract governs mint/burn operations, transfers, and economic rights; the custody of the asset, when necessary, can remain off‑chain. In this way, the programmability of the blockchain is combined with traditional safeguards.
- Issuance: token-minting with KYC controls.
- Record: on-chain transfers and automated reconciliation.
- Operations: distribution of interest/dividends via smart contract.
- Redemption: burn of the token followed by settlement in fiat.
Impact on Markets and Liquidity
The immediate benefit is the reduction of time and intermediaries. The traditional T+2 shifts to a T+0/atomic for many operations, cutting down counterparty costs and operational risk. That said, legacy processes do not disappear instantly: they coexist until adoption matures.
The liquidity of tokenized assets is still limited, but growing. On-chain Treasuries, although amounting to “a few billion,” remain far from the complex US Treasury market, which totals about $20 trillion. Yet, integration with DeFi gradually expands their usage surface.
Tokenized Treasuries 2025: numbers and trends
- Demand driven by high rates and the need for on-chain cash management.
- Use as collateral in permissioned DeFi protocols.
- Integration with stablecoin to enable instant settlement.
- Limitations: presence of secondary venues and liquidity fragmentation.
Case study: from pilot to public products
Banks and fintech have experimented for years with private issuances with players like ConsenSys, Tokeny, and Securitize, and institutions such as JPMorgan, Santander, and UBS. The turning point came with the arrival of public products endorsed by global brands, which have solidified the adoption path.
- Franklin Templeton: its OnChain U.S. Government Money Fund, with an “on‑chain” share class, has reached an AUM in the hundreds of millions, operating on public blockchains.
- BlackRock: its USD Institutional Digital Liquidity Fund “BUIDL”, launched in 2024 on Ethereum, experienced rapid growth in fundraising in the following months.
- Fidelity: has launched initiatives on short-term funds with on‑chain share class in the period 2024–2025, collaborating with tokenization providers Fidelity Digital Assets.
In parallel, projects like Onyx by JPMorgan (TCN networks) and Project Guardian by MAS are “industrializing” the processes of issuance and institutional-level tokenized settlement.
Tokenized Real Assets for Institutions
Shares of funds, Treasury, and liquidity instruments are migrating on‑chain, accompanied by access controls and transfer caps. Agencies like S&P and Moody’s analyze operational and custody risk, incorporating these products into investment‑grade standards, as highlighted by S&P Global Ratings and Moody’s. Indeed, evaluation criteria are adapting to the on‑chain component.
Regulation: Progress and Open Issues
In 2025, the regulatory landscape is continuously evolving. In Europe, the MiCA regulation for issuers of tokens and the pilot regime for DLT applicable to financial instruments are already in roll-out, as indicated by ESMA on MiCA and by the DLT Pilot Regime. In this context, operators are aligning policies and controls.
In the USA, the regulatory context remains fragmented: discussions are ongoing about rules on stablecoins and the definition of security/commodity, while practice advances through filings and no-action interpretations. Meanwhile, the BIS promotes the idea of a unified ledger as a foundation for more interoperable markets, as reported by the BIS. However, convergence between jurisdictions still requires time.
What is missing for the next step
- Additional regulated platforms for the secondary market and a greater concentration of liquidity.
- End-to-end accounting integration and standardized reporting.
- Secure cross-chain interoperability to avoid fragile bridges.
- Greater clarity on custody, accounting, and taxation.
Conclusion: from proof of concept to production
Tokenization is not just a technological ornament, but a real architectural shift that reduces friction, increases transparency, and integrates traditional assets into a common and programmable ledger. With favorable rates, mature infrastructures, and the entry of institutional players, the trajectory remains clearly oriented towards adoption. That said, the scale will depend on the quality of the implementation.
The stakes are high: it’s about shifting part of the public debt market, liquidity funds, and deposits onto programmable rails. The technology is ready; the pace will be set by regulation, the quality of the user experience, and shared standards. Yet, it will be the daily operations that will determine the maturity of the model.
