Tokenized U.S. Treasuries Surpass $5B as Fidelity Eyes Digital Liquidity on Ethereum

The market value of tokenized U.S. Treasuries has exceeded $5 billion for the first time, growing by $1 billion in just two weeks. This surge is driven by heavy inflows into major asset management and digital asset platforms such as BlackRock and Securitize’s BUIDL, underscoring a broader institutional embrace of blockchain-based real-world assets. Fidelity Investments recently filed for regulatory approval to launch its Fidelity Treasury Digital Liquidity product on the Ethereum blockchain, aiming to replicate the efficient yield-generation mechanisms of traditional money market funds. The trend is complemented by moves from other industry players, including Spark’s plan to allocate $1 billion to projects like BUIDL and Superstate’s USTB, highlighting the growing potential for backed crypto tokens to serve not only as yield instruments but also as non-cash collateral in decentralized finance protocols. Stakeholders believe that tokenization can transform financial services by enhancing operational efficiencies and enabling improved capital allocation across markets.