Tokenized US Treasuries have surged from $1.7 billion in early 2024 to $15.2 billion across 76 products by May 2026, marking a critical shift in institutional crypto adoption. This growth signals risk committees now accept these instruments as margin collateral, the highest bar for institutional trust. Leading products include Circle’s USYC at $2.9 billion, BlackRock’s BUIDL at $2.6 billion, and Ondo’s USDY and Franklin Templeton’s BENJI each at $2.1 billion, delivering 3.4 percent category APY.
The shift matters because collateral acceptance requires continuous valuation, predictable liquidation, and clear ownership verification. Twenty-four-hour settlement infrastructure eliminates the traditional objection that volatile assets cannot be liquidated outside market hours. Standard Chartered’s May 2026 full acquisition of Zodia Custody underscores this operational integration into core banking services. Binance processes $34.3 trillion across 449 assets, functioning as settlement infrastructure rather than merely a trading platform.
FXnCO Insight
Risk committees accepting tokenized Treasuries as margin represents the institutional validation that price rallies cannot deliver, making collateral eligibility the key metric for tracking real institutional adoption.
Source: Finance Magnates