Securitize assists in the launch of a tokenized money market fund by VanEck
In the ever-evolving world of finance, tokenized treasury funds are making a significant impact, with assets under management reaching an impressive $7.4 billion by mid-2025 - an 80% increase from previous periods[1][4]. This growth is primarily driven by institutional investors seeking higher yield alternatives to traditional stablecoins, as tokenized treasuries pay real yield aligned with prevailing interest rates[1].
Major asset managers like BlackRock, Franklin Templeton, and Janus Henderson have actively entered the market, offering tokenized U.S. government bonds and Treasury funds that issue their own tokens[1]. This boom signifies a growing preference for yield-bearing tokenized real-world assets (RWAs) over stablecoins, which typically do not distribute yield to holders[1].
The rise of tokenized RWAs is part of a broader market surge that crossed $25 billion globally in Q2 2025, fueled by institutional demand for yield, transparency, and operational efficiency across diverse asset classes, including private credit and commodities[2][4].
Regulatory and infrastructure developments are also playing a crucial role in this growth. The U.S. Commodity Futures Trading Commission (CFTC) has initiated pilots for tokenized collateral, exploring blockchain-based solutions that can enhance transparency and efficiency in derivatives markets[2]. Similarly, the Chicago Mercantile Exchange (CME) is testing blockchain technology to potentially streamline clearing, settlement, and collateral management[2].
These pilots fit within growing regulatory acceptance of tokenization as part of public financial infrastructure, supported by ongoing dialogue with the SEC and other regulators[2]. The future implications for tokenized treasury funds and broader tokenized RWAs in mainstream financial markets include increased institutional adoption, potential disruption to stablecoin issuers, further integration into traditional financial infrastructure, and a growing hybrid market where stablecoins coexist with tokenized RWAs[1].
While the market is expanding rapidly and gaining institutional legitimacy, tokenization remains an emerging field with operational risks and regulatory uncertainties that investors and participants must navigate carefully[4]. Notable players in the field include Ondo Finance, Superstate, and Circle (Hashnote), which are among the startups leading the pack in offering tokenized funds[3].
In summary, tokenized treasury funds are currently in a phase of fast growth within mainstream markets, catalyzed by institutional demand and enabled by supportive regulatory pilots like those of the CFTC and CME. If these pilots prove successful, tokenized treasuries and other RWAs could become foundational components of the future financial ecosystem, offering a blend of transparency, efficiency, and yield not commonly available in legacy systems[1][2][3][4].
- The growth in the tokenized treasury funds market is driven by institutional investors looking for higher yield alternatives to traditional stablecoins, with assets under management anticipated to reach $7.4 billion by mid-2025.
- Major asset managers like BlackRock, Franklin Templeton, and Janus Henderson are actively entering the market, offering tokenized U.S. government bonds and Treasury funds that issue their own tokens.
- Regulatory and infrastructure developments, such as the CFTC's pilots for tokenized collateral and the CME's testing of blockchain technology, are playing a crucial role in this market growth, indicating a growing acceptance of tokenization as part of public financial infrastructure.
- Notable startups leading the pack in offering tokenized funds include Ondo Finance, Superstate, and Circle (Hashnote), demonstrating the potential for tokenization to become a foundational component of the future financial ecosystem, offering a blend of transparency, efficiency, and yield not commonly available in legacy systems.
