Surging demand for dollar-based yield fuels rapid growth in on-chain government debt and private credit markets
The market for tokenized real-world assets (RWAs) is expanding at a pace few predicted, with US Treasurys emerging as the primary catalyst. New industry data shows that 2025 marked a major turning point for institutional-grade tokenization and the trend is widely expected to accelerate through 2026 as investors seek secure, yield-bearing dollar products on blockchain rails.
Driven by global appetite for dollar linked returns, the value of on-chain US Treasurys more than doubled this year, climbing from $3.91 billion to $8.68 billion. This growth reflects a shift in preference: when yield is accessible with minimal added risk, investors choose Treasurys over holding tokenized dollars directly.
Private credit followed a similar trajectory, rising from $9.85 billion to $18.58 billion, signaling broader institutional interest in tokenized fixed income products. The trend highlights how blockchain settlement, issuance and distribution are moving from experimental pilots to live large-scale financial activity.
Ethereum remains the leading network for tokenized Treasurys, holding over $4.9 billion in on-chain government debt. Its dominance underscores the platform’s liquidity and developer infrastructure, though competition among networrks is expected to intensify next year.
Excluding stablecoins, the broader RWA market expanded from $5.5 billion at the end of 2024 to $18.1 billion in 2025, representing 229% annual growth. This sharp rise signals that tokenized assets are becoming embedded within mainstream capital markets rather than operating on the industry’s fringe.
As 2026 approaches, analysts expect continued momentum driven not by speculaation, but by the integration of blockchain with traditional financial demand for yield, efficiency and transparent settlement.
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This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.