Blackrock and Circle Lead Tokenized Bond Market as Market Value Climbs to $15.20 Billion
May 4, 2026 – The market for tokenized U.S. Treasury bonds continues its rapid expansion, reaching a total valuation of $15.20 billion in early May. This marks a significant increase of $1.06 billion over the past 30 days, illustrating heightened demand and growing institutional interest within the on-chain finance sector.
Rising Demand in Tokenized Treasury Bonds
According to recent data compiled by rwa.xyz, among 71 different tokenized assets, the average annual percentage yield (APY) remained solid at 3.36% over the prior week, reflecting steady investor returns. The number of unique holders of on-chain Treasury instruments has risen to 58,658 addresses, underscoring the broadening adoption across the blockchain ecosystem.
Leading Players: Circle’s USYC and Blackrock’s BUIDL
Circle’s USYC stablecoin currently holds the top spot, commanding a tokenized Treasury value of approximately $2.91 billion. USYC operates across three major blockchains—BNB Chain, Ethereum, and Solana—demonstrating a multi-chain approach that likely contributes to its market dominance.
Coming in close second is Blackrock’s USD Institutional Digital Liquidity Fund (BUIDL) with a market capitalization of $2.58 billion. Issued via Securitize, BUIDL spread its presence over eight unique blockchain networks, reflecting strong institutional backing and diverse deployment.
Top Five Tokenized Treasury Products Account for Nearly $11 Billion
Rounding out the top five are:
- Ondo’s U.S. Dollar Yield (USDY) valued at $2.14 billion
- Franklin Templeton’s Franklin Onchain U.S. Government Money Fund (BENJI) at $2.05 billion
- Janus Henderson’s Anemoy Treasury Fund (JTRSY) at $1.24 billion
Combined, these five leading products represent approximately $10.92 billion of total market value, highlighting their critical role in the tokenized Treasury landscape.
Expanding Market and Multi-Chain Adoption
Beyond the top five, the remaining $4.28 billion is distributed among 66 other tokenized Treasury assets. Notably, the 6th to 10th largest funds—such as Wisdomtree Government Money Market Digital Fund (WTGXX) with $978.06 million and Superstate Short Duration U.S. Government Securities Fund (USTB) holding $814.13 million—collectively exceed $3 billion in market value.
The widespread use of multiple blockchain platforms by these products points to the sector’s ongoing push for multi-chain compatibility, which may accelerate adoption across various decentralized networks.
Institutional Interest Reinforces Market Hierarchy
With capital increasingly concentrated among top-tier issuers such as Circle and Blackrock, the tokenized Treasury market is forming a clearer hierarchy in 2026. While dominant funds maintain substantial market shares, a healthy diversity of smaller-scale issuers and blockchain ecosystems persists, indicating both stability and resilience.
If current trends in issuance and adoption continue—as many analysts and market participants anticipate—the tokenized Treasury sector is positioned to attract further institutional investment and on-chain liquidity seekers searching for yield and dollar-pegged stability.
Tags: Blackrock, Circle, Tokenization, Real-World Assets (RWA), U.S. Treasury Bonds
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