Tokenized Treasurys, which represent U.S. government bonds on blockchain networks, have officially entered the big leagues. As of now, over $8.6 billion worth of these digital assets are in circulation. While early use cases focused on passive yield strategies, a major shift is underway — these instruments are now being used actively as onchain collateral.
Crypto exchanges such as Bybit and Deribit have started accepting tokenized money market funds (MMFs) for margin trading and lending, signaling growing trust in these blockchain-based instruments. Meanwhile, traditional banks like DBS are running pilot programs using tokenized Treasurys for repo transactions and credit markets — areas where secure, liquid collateral is critical.
Traditional Finance Embraces Blockchain Rails
This evolution isn’t just limited to crypto-native platforms. Swift, Chainlink, and UBS have made significant progress connecting tokenized funds to the banking infrastructure. By leveraging ISO 20022 messaging standards, they’re allowing traditional financial systems to initiate blockchain transactions seamlessly. This reduces friction between traditional and digital asset markets and brings real-world use cases to tokenized securities.
These integrations mark a significant transition for tokenized Treasurys — from being niche DeFi experiments to forming part of the backbone of modern financial infrastructure.
RESEARCH: Tokenized Treasurys have crossed $8.6B and are shifting from passive yield to active collateral.
— Cointelegraph (@Cointelegraph) November 3, 2025
Exchanges like Bybit and Deribit now accept tokenized MMFs for trading and margin, while banks like DBS are testing them in repo and credit markets.
Swift, Chainlink… pic.twitter.com/n5Qmbx0UVY
Are Tokenized Treasurys the Future of Collateral?
Given their transparency, 24/7 availability, and programmability, tokenized Treasurys are increasingly viewed as ideal building blocks for onchain financial systems. They can power automated lending, decentralized repo markets, and even cross-border credit networks with more efficiency and fewer intermediaries.
The question now isn’t if they’ll be used — but how broadly. As adoption grows across exchanges, banks, and infrastructure providers, tokenized Treasurys are positioned to become the standard for onchain collateral in both crypto and traditional finance.