Tokenized Government Bonds Worth Over $6 Billion
In the ever-evolving world of finance, a significant shift is underway as traditional financial instruments, such as government bonds, are being tokenized and integrated into the cryptocurrency ecosystem.
One of the key players in this transition is BlackRock, which leads the tokenization of US government bonds with its BUIDL tokenized money market/treasury fund. As of August 26, 2025, the fund has a total asset value of approximately 2.387 billion USD and distributes earnings daily as additional tokens. Other notable institutions participating in this trend include Franklin Templeton, with BENJI holding $700 million in tokenized US government bonds, and Ondo, Circle, and Spiko, each managing substantial amounts.
The tokenization of government bonds is not limited to the US market. Spiko's EUTBL holds about $163 million in government bonds from the Eurozone. The total value of tokenized government bonds currently stands at over six billion dollars, a figure that continues to grow.
However, it's important to note that the decentralised finance (DeFi) sector, despite its rapid growth, has little to no role in meeting the needs of the real economy. No household or business relies on DeFi protocols for mortgages or hedging real-world risks.
The tokenization of real-world assets (RWAs) could potentially bridge this gap by connecting DeFi with traditional finance (TradFi) and the real economy. However, it raises concerns that require regulatory attention to prevent potential risks from spilling over into traditional finance and the real economy. Financial institutions interacting with the crypto ecosystem are advised to meticulously assess the associated risks.
Meanwhile, tokenized commodities, primarily gold tokens issued by Paxos and Tether, have almost $1.5 billion in capital and are freely tradeable on Uniswap and other exchanges. The categories of tokenized stocks and traditional funds have much smaller amounts of capital, with $370 million and $447 million respectively.
As the tokenization of government bonds continues to gather momentum, it remains a promising development that could reshape the financial landscape, connecting traditional and decentralized finance, and potentially providing new opportunities for investors and businesses alike.
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