Tokenized U.S. Treasuries have hit a record $14 billion as of April 2026, a 37x jump from early 2023. That has positioned Treasuries as a safe haven for the broader $29 billion RWA sector, but will everyday buyers actually “buy in”?
Token Terminal data shows that the surge is driven by heavyweights bringing institutional-grade yield on-chain. Circle’s USYC leads the pack with $2.9 billion in assets, catering primarily to non-U.S. investors. BlackRock’s BUIDL, managed via Securitize, has surpassed $2.5 billion, and Centrifuge’s JTRSY is third with $1/.5 billion in assets.
Meanwhile, Franklin Temploton’s IBENJI sits at a close fourth with $1 billion in assets. Ondo Finance’s USDY leads the sub-billion pack in fifth place with $972.2 million. The top 20 issuers manage approximately $13.5 billion in assets.
However, while tokenized U.S. Treasuries are shaping up to be another multi-trillion-dollar market, no clear winner has emerged yet. The race is very much on, as retail investors still face significant hurdles compared to institutions. Retail adoption is largely happening “under the hood” rather than through active trading.
Institutions use ‘Russian Doll’ stablecoins to tap retail investors
Retail investors are unknowingly embracing Treasuries through new stablecoins like Ethena’s USDtb, which are themselves backed by institutional funds like BlackRock’s BUIDL, as institutions race to tap the retail market.
The rise of “on-chain neobanks” like Ether.fi and apps like Robinhood is also abstracting the “complexity,” allowing retail investors to earn Treasury yields (currently around 3.4%-5%) directly within their savings/checking interfaces. Ethena’s sUSDe currently targets an APY of 8%-12%, but more aggressive users leverage platforms like Boros to push returns above 20% by betting on funding rate volatility.
However, most of the retail investors who are already onboard are using tokenized Treasuries as margin collateral on platforms like Hyperliquid. Notably, DeFi collateral enables them to maintain “risk-on” positions while their underlying collateral offsets funding costs with steady 5% yields.
Carlos Domingo, the CEO of Securitize, also says that tokenized treasuries have now reached a meaningful size, delivering real value by actively improving capital efficiency. Regardless, retail investors still face significant hurdles (barrier to entry) compared to institutions. High-tier funds like BlackRock’s BUIDL still require minimums of at least $5 million, effectively barring retail investors. Therefore, tokenized Treasuries are still boring for true “yield chasers.”
U.S. Treasuries exhibit a ‘steady but cautious’ performance after a poor Q1
U.S. Treasuries continue to exhibit a “steady but cautious” performance following a volatile first quarter. Yields have largely stabilized in April as markets react to an indefinite extension of the U.S.-Iran ceasefire and a recent 20-year bond auction that showed huge demand.
Meanwhile, the Treasury curve has slightly edged upward in April compared to the start of the year. The 2-year yield is holding steady at 3.72%, down from its highs of 3.79% in the first quarter of 2026. The 10-year yield is also hovering near 4.25%-4.32%, a rise from 4% in late 2025. The 30-year bond is trading at 4.88%-4.92%.
Major Treasury-focused ETFs have also seen positive price action in April as yields stabilize. iShares 7-10-year Treasury Bond ETF (IEF) is up 0.60% to $95.61, bringing its total return over the last 12 months to approximately 3.91%.
iShares 20+-year Treasury Bond ETF (TLT) also remained stable following a solid 20-year auction that priced 0.9 basis points lower than pre-auction levels. That was an indication of the strong institutional appetite for long-term debt. Demand remains high for tokenized Treasuries, which are increasingly used as collateral across 24/7 global markets.
