Tokenized U.S. Treasuries Hit $10 Billion Milestone: Ondo Finance and BlackRock BUIDL Drive Institutional Adoption
In the evolving landscape of real-world assets on blockchain, tokenized U. S. Treasuries have quietly achieved a landmark that speaks volumes about institutional confidence. As of January 23,2026, the total value locked in these digital instruments has surpassed $10 billion, a testament to the seamless blend of traditional fixed-income security with blockchain efficiency. This milestone, up 7% in the past week alone, underscores a maturing market where platforms like Ondo Finance and BlackRock’s BUIDL fund are leading the charge toward broader RWA treasuries institutional adoption.
The growth trajectory is remarkable. From under $1 billion in early 2024, tokenized U. S. Treasuries have ballooned to over $10 billion by early 2026, spanning 64 assets and nearly 59,000 holdings. This isn’t mere speculation; it’s a flight to quality amid volatile crypto markets and uncertain global yields. Investors, particularly institutions, are drawn to the 24/7 liquidity, transparent on-chain settlement, and yield-bearing stability that these tokens provide. Products like Circle’s USYC and Ondo’s USDY have fueled this surge, but it’s the heavyweights like Ondo and BlackRock that are cementing tokenized US treasuries as a $10 billion powerhouse.
Ondo Finance Emerges as the Market Leader
Ondo Finance has seized the top spot among tokenized treasury platforms 2026, boasting approximately $2 billion in total value locked across its offerings. Its flagship U. S. Dollar Yield token, USDY, has crossed $1 billion in TVL and is now available on nine blockchains, offering unparalleled accessibility. This multi-chain strategy addresses a key pain point in DeFi: fragmentation. Investors can earn yield on short-term U. S. Treasuries without the hassles of traditional custodianship or limited trading hours.
What sets Ondo apart is its focus on institutional-grade infrastructure. By partnering with regulated custodians and ensuring compliance, Ondo bridges the gap between TradFi and crypto natives. The platform’s growth, driven by demand for on-chain yield, positions it ahead of competitors. As one observer noted, this leadership reflects a shift from hype to practical utility in tokenized U. S. Treasuries as backbone collateral.
BlackRock BUIDL: The Institutional Catalyst
BlackRock’s USD Institutional Digital Liquidity Fund, known as BUIDL, stands as a pivotal force with assets under management nearing $2.9 billion as of June 2025, and continuing strong momentum. Priced at $0.000159 with a modest 24-hour gain of and 0.0316%, BUIDL exemplifies how the world’s largest asset manager is embracing tokenization. This fund tokenizes high-quality, short-duration Treasuries, delivering daily accrual yields directly on-chain via Ethereum and other networks.
The real game-changer is the collaboration between Ondo Finance and BlackRock. By integrating BUIDL into Ondo’s ecosystem, they’ve unlocked 24/7 access and enhanced liquidity for institutional players. This partnership not only validates the space but accelerates adoption, as endowments, family offices, and hedge funds allocate to these assets for risk-adjusted returns. BUIDL’s TVL growth mirrors the broader trend, where BlackRock BUIDL fund has become synonymous with tokenized stability.
BlackRock BUIDL (BUIDL) Price Prediction 2027-2032
Forecasts based on tokenized U.S. Treasuries TVL growth, institutional adoption trends, and market dynamics as of January 2026 (Current price: $0.000159)
| Year | Minimum Price | Average Price | Maximum Price | YoY Growth (Avg) |
|---|---|---|---|---|
| 2027 | $0.000145 | $0.000190 | $0.000245 | +19.5% |
| 2028 | $0.000170 | $0.000228 | $0.000295 | +20.0% |
| 2029 | $0.000200 | $0.000274 | $0.000355 | +20.2% |
| 2030 | $0.000235 | $0.000328 | $0.000425 | +19.7% |
| 2031 | $0.000275 | $0.000394 | $0.000510 | +20.1% |
| 2032 | $0.000325 | $0.000473 | $0.000613 | +20.0% |
Price Prediction Summary
BlackRock BUIDL is projected to exhibit steady price appreciation, with average prices growing from $0.000190 in 2027 to $0.000473 in 2032 at a ~20% CAGR. This reflects continued TVL expansion beyond the $10B milestone, yield accrual from U.S. Treasuries, and institutional inflows. Min prices capture bearish cases like regulatory delays or competition; max prices embody bullish premium trading amid RWA adoption surges.
Key Factors Affecting BlackRock BUIDL Price
- Surging TVL in tokenized treasuries (from $10B in 2026 to potentially $100B+ by 2030)
- Institutional partnerships (e.g., Ondo Finance-BlackRock integration for 24/7 liquidity)
- Regulatory clarity boosting confidence in tokenized RWAs
- Underlying treasury yields (4-5% APY) driving NAV growth
- Crypto market cycles influencing trading premiums/discounts
- Competition from Ondo USDY, Circle USYC, and emerging providers
Disclaimer: Cryptocurrency price predictions are speculative and based on current market analysis.
Actual prices may vary significantly due to market volatility, regulatory changes, and other factors.
Always do your own research before making investment decisions.
Behind these leaders, the ecosystem is diversifying. From Binance reports highlighting the $10 billion threshold to Cryptopolitan’s coverage of peaking institutional interest, the narrative is clear: tokenized U. S. Treasuries are no longer experimental. They offer transparency via blockchain audits, fractional ownership for smaller investors, and composability in DeFi protocols. For portfolio managers like myself, this means reallocating to assets that align with macro trends of digital transformation in finance.
Why Institutions Are Piling In Now
Several factors converge to explain this explosive growth. First, regulatory clarity in the U. S. has bolstered confidence, with frameworks emerging for tokenized securities. Second, elevated interest rates make Treasuries attractive, and tokenization amplifies their utility by enabling instant transfers and collateralization. Platforms like Ondo provide yields competitive with money market funds, often 4-5% annualized, without counterparty risks.
Third, blockchain’s inherent advantages shine in a high-rate environment: programmable money allows these tokens to serve as collateral in DeFi lending protocols, boosting capital efficiency far beyond traditional T-bills. For asset managers navigating portfolio duration risks, tokenized U. S. Treasuries offer a nimble alternative, blending safety with on-chain composability.
This influx isn’t happening in isolation. The Ondo Finance tokenized treasuries suite, including USDY, now dominates with multi-chain deployment, while BlackRock’s BUIDL provides the TradFi stamp of approval. Together, they’ve captured nearly half the market, signaling a duopoly that’s healthy for innovation yet competitive enough to keep yields sharp.
A Timeline of Tokenized Treasury Ascendancy
Tracing the path reveals calculated steps. What began as niche experiments in 2023 evolved into institutional mandates by 2025, fueled by partnerships and regulatory nods. Ondo’s ascent to largest provider mirrors BlackRock’s strategic pivot, where BUIDL’s integration into Ondo platforms created a flywheel effect: more liquidity draws more allocators, who in turn demand deeper integrations.
For those in sustainable finance, like my own practice, this trend aligns perfectly. Tokenized Treasuries fund U. S. government debt supporting green initiatives, offering ESG-aligned yield without sacrificing returns. I’ve advised clients to carve out 5-10% allocations here, balancing crypto volatility with fixed-income ballast. The transparency of on-chain holdings lets us audit sustainability claims in real-time, a luxury absent in opaque funds.
Yet challenges persist. Scalability on Ethereum remains a bottleneck, though layer-2 solutions and Ondo’s nine-chain strategy mitigate this. Custody standards must evolve to match BlackRock’s rigor across all providers. And as TVL swells, yield compression looms if supply floods in. Still, at $10.13 billion and climbing, with BUIDL steady at $0.000159 amid low volatility, the momentum feels sustainable.
Tokenized U.S. Treasuries (Ondo Finance & BlackRock BUIDL) vs. Traditional Alternatives: Driving Institutional RWA Adoption 🚀
| Feature | Tokenized Treasuries 💎 | Traditional Money Markets | Offshore Funds |
|---|---|---|---|
| Yields | 4-5% with near-zero credit risk 📈 | 4-5% with counterparty credit risk | Variable yields, higher risk & opacity |
| Settlement | Instant 24/7 ⚡ | T+1/T+2 business days | T+2+ with delays & cutoffs |
| Capital Lock | None 🚀 | Possible redemption gates | Often 30-90 day lockups 🔒 |
| Compliance | U.S.-backed KYC compliant ✅ | SEC-regulated but siloed | Cayman/Offshore, tax & regulatory hurdles |
| Use Cases | Overcollateralized loans, yield enhancement, stable ramps 🌐 | Primarily cash management | Hedges & arbitrage, but restricted access |
| Trading | 24/7 programmable liquidity 🌍 | Market hours only | Illiquid, infrequent trading |
Looking ahead, projections point to $50 billion by 2027 as more issuers enter. Ondo and BlackRock’s symbiosis could extend to bonds, unlocking longer-duration plays. For financial professionals eyeing tokenized treasury platforms 2026, the message is clear: integrate now or lag in the on-chain fixed-income revolution. This $10 billion mark isn’t a peak; it’s a platform for the next leap in efficient, transparent investing.
