Tokenized Treasuries cross $8.6B as banks and exchanges push collateral use

Tokenized U.S. Treasuries, the largest real-world asset class after stablecoins, have surpassed an $8.6 billion market capitalization, driven by funds like BlackRock's BUIDL. These tokenized money-market funds (MMFs) are transitioning from passive yield generation to active use as collateral in trading, credit, and repo transactions, facilitated by adoption from exchanges like Bybit and banks like DBS. Key infrastructure advancements, such as the successful pilot between Chainlink, Swift, and UBS using ISO 20022 messaging, are enabling tokenized assets to integrate with traditional financial settlement systems, moving them toward routine production use. While adoption is growing, friction points remain, including regulatory restrictions limiting access to Qualified Purchasers and operational haircuts applied by exchanges due to settlement cycle differences compared to traditional Treasuries.

(Source：Cointelegraph)