Tokenized Treasuries Hit $7.45B ATH – But Can Growth Outpace Risks?

Core Insights - U.S. Treasuries are recognized as the safest and most liquid assets globally, with Treasury Bills (T-Bills) being short-term, risk-free investments exempt from state and local taxes [1] - Tokenized U.S. Treasuries are gaining popularity, with a record high of $7.45 billion reached on August 27, surpassing the previous peak of $7.42 billion on July 15 [3] Group 1: Tokenized U.S. Treasuries - Tokenized U.S. Treasuries are digital tokens on a blockchain that represent ownership of U.S. government debt or shares of funds holding Treasuries [4] - Implementation of tokenized Treasuries varies, with some tokens representing fractional ownership of T-Bills/T-Notes, while others represent ownership of traditional funds that hold Treasuries [5] - Tokenized Treasuries can exist on public blockchains like Ethereum or on permissioned systems, with Ethereum currently securing $5.2 billion of treasury products, representing a 70% market share [6] Group 2: Major Players in Tokenized Treasuries - BlackRock has launched the BUIDL fund, the world's largest tokenized U.S. Treasury for institutional investors, valued at $2.2 billion and paying daily interest directly to wallets, 90% of which are on Ethereum [7] - Fidelity Asset Management has introduced the Fidelity Digital Interest Token (FDIT), a blockchain-based version of its Treasury money market fund, which mirrors shares of the Fidelity Treasury Digital Fund and is issued on the Ethereum network [8]