Tokenized US Treasuries reached a record $14 billion in April 2026, a 37-fold increase since the start of 2023. This has positioned Treasuries as a safe haven for the broader $29 billion RWA sector, but will everyday buyers actually “buy in”?
Token Terminal data shows that the surge is being driven by heavyweights bringing institutional-level returns to the chain. Circle’s USYC is at the top with $2.9 billion in assets and primarily targets non-U.S. investors. BlackRock’s BUIDL, managed through Securitize, has surpassed $2.5 billion, and Centrifuge’s JTRSY is in third place with $1.5 billion in assets.
Meanwhile, Franklin Temploton’s IBENJI is a close fourth with a fortune of $1 billion. Ondo Finance’s USDY leads the sub-billion field in fifth place with $972.2 million. The top 20 issuers manage assets of around $13.5 billion.
But as tokenized U.S. Treasury bonds become another multi-trillion-dollar market, there is still no clear winner. The race is on as retail investors still face significant hurdles compared to institutions. Retail adoption largely happens “under the hood” rather than through active commerce.
Institutions are using “Russian Doll” stablecoins to attract retail investors
Retail investors are unwittingly taking advantage of government bonds via new stablecoins like Ethena’s USDtb, which are in turn backed by institutional funds like BlackRock’s BUIDL, as institutions vie to tap the retail market.
The rise of “on-chain neobanks” like Ether.fi and apps like Robinhood also abstracts the “complexity” and allows retail investors to earn Treasury yields (currently around 3.4% to 5%) directly through their savings/checking interfaces. Ethena’s sUSDe currently targets an APR of 8-12%, but more aggressive users are using platforms like Boros to boost returns to over 20% by betting on the volatility of funding rates.
However, most retail investors already on board are using tokenized government bonds as margin collateral on platforms like Hyperliquid. Especially DeFi securities enabled They can maintain “risk-on” positions while their underlying collateral offsets the cost of funding with consistent returns of 5%.
Also Carlos Domingo, CEO of Securitize says that tokenized government bonds have now reached significant size and deliver real value by actively improving capital efficiency. Regardless, private investors still face significant hurdles (barriers to entry) compared to institutions. High-profile funds like BlackRock’s BUIDL still require a minimum amount of $5 million, effectively ruling out retail investors. Therefore, tokenized government bonds are still boring for real “yield hunters”.
US Treasury bonds are showing a “stable but cautious” performance after a weak first quarter
US Treasuries continue to deliver a “stable but cautious” performance after a volatile first quarter. Yields largely stabilized in April as markets reacted to an indefinite extension of the US-Iran ceasefire and a recent 20-year bond auction that showed huge demand.
Meanwhile, the Treasury curve rose slightly in April compared to the start of the year. The 2-year yield remains steady at 3.72%, below its peak of 3.79% in the first quarter of 2026. The 10-year yield is also hovering near 4.25%-4.32%, up from 4% at the end of 2025. The 30-year bond is trading at 4.88%-4.92%.
Large Treasury-focused ETFs have also done this seen positive price development in April as yields stabilize. The iShares 7-10 Year Treasury Bond ETF (IEF) is up 0.60% to $95.61, for a total return over the last 12 months of about 3.91%.
The iShares 20+-Year Treasury Bond ETF (TLT) also held steady after a solid 20-year auction that saw the price 0.9 basis points below pre-auction levels. This was an indication of strong institutional appetite for long-term debt. Demand remains high for tokenized government bonds, which are increasingly used as collateral in 24/7 global markets.
