The tokenization of real-world assets experienced explosive growth in 2025, with U.S. Treasury bonds leading a 229% surge according to CoinShares' latest market analysis. As institutional demand for dollar-denominated yields intensifies, experts forecast that onchain Treasury products will continue dominating the tokenization landscape through 2026.
The convergence of traditional finance and blockchain technology reached a significant milestone in 2025, as tokenized real-world assets (RWAs) experienced a remarkable 229% increase, according to a comprehensive market outlook released by digital asset investment firm CoinShares.
U.S. Treasury securities have emerged as the undisputed leader in this tokenization revolution, capturing the lion's share of onchain activity. This trend reflects growing institutional confidence in blockchain-based financial instruments and the persistent demand for secure, dollar-denominated yield opportunities.
The explosive growth of tokenized Treasuries addresses a fundamental need in the cryptocurrency ecosystem: providing stable, regulated yield options for digital asset holders. By bringing government-backed securities onchain, these products offer crypto investors exposure to traditional fixed-income returns without exiting the blockchain environment.
CoinShares' analysis suggests this momentum will extend well into 2026, driven primarily by sustained appetite for dollar yields. The firm notes that as global economic uncertainty persists and investors seek refuge in safe-haven assets, tokenized U.S. Treasuries present an attractive middle ground between crypto innovation and traditional financial stability.
The tokenization process involves creating digital representations of physical Treasury bonds on blockchain networks, enabling 24/7 trading, fractional ownership, and near-instantaneous settlement. These advantages over conventional Treasury trading have attracted both retail and institutional participants, contributing to the sector's rapid expansion.
Industry observers highlight several factors supporting continued growth. First, regulatory clarity around tokenized securities has improved significantly, reducing compliance concerns for institutional participants. Second, major financial institutions have begun launching their own tokenization platforms, lending credibility and infrastructure to the space. Finally, the integration of tokenized Treasuries into decentralized finance (DeFi) protocols has created new use cases and liquidity opportunities.
The broader RWA tokenization market extends beyond Treasuries to include real estate, commodities, and corporate bonds. However, government securities remain the dominant force due to their liquidity, regulatory transparency, and universal appeal as a risk-off asset class.
As 2026 approaches, the continued institutionalization of crypto markets appears poised to further accelerate tokenized Treasury adoption, potentially establishing blockchain-based government securities as a permanent fixture in the global financial landscape.