As of September 12, 2025, the total value of tokenized U.S. Treasuries on public blockchains stands at $7.42 billion. A significant portion of this value is concentrated within Ethereum-linked issuances, as tracked by RWA.xyz. Fidelity Investments has expanded the market with the introduction of its new Fidelity Treasury Digital Fund’s OnChain Class, known as the Fidelity Digital Interest Token, which has approximately $203.7 million outstanding. The Bank of New York Mellon serves as the custodian for this fund, which currently has two on-chain holders.
The SEC materials for this fund highlight a structure where the transfer agent maintains the official share register in book-entry form, while ownership details are also documented on a public blockchain. According to the filings, the fund predominantly invests in cash and U.S. Treasuries, adhering to Rule 2a-7 requirements.
Other notable players in the tokenized Treasury market include BlackRock’s USD Institutional Digital Liquidity Fund, which holds nearly $2.20 billion, and WisdomTree’s Government Money Market Digital Fund, valued at around $832.3 million—growing by approximately 40% in a month. Franklin Templeton’s on-chain U.S. government money fund is valued close to $752.3 million, Ondo’s short-term government bond fund is around $729.6 million, and Circle’s USYC token is at roughly $579.1 million. These products operate on Ethereum and also support other networks like Base, Optimism, Arbitrum, and occasionally Solana, Avalanche, or Stellar.
To reach the projected target of $10 billion by the year-end, the market will need to experience about $2.58 billion in net increases from the current $7.42 billion base, translating to approximately $700 million in monthly growth through December. Current U.S. money market fund assets are significant, amounting to $7.26 trillion as of early September, which indicates that even a minor reallocation of funds into tokenized Treasury products could yield substantial inflows.
The yield context is also encouraging; as of September 10, three-month Treasury bill rates were at 3.94%, influencing the popularity of tokenized funds characterized by yield-generating capabilities. Recent improvements to Ethereum’s EIP-4844 have further lowered data availability fees, enhancing efficiency for minting and transferring tokens.
The distribution framework is integral to the sector’s appeal. Circle’s USDC smart contract allows for quick redemptions into stablecoins, and USYC can function as yield-bearing off-exchange collateral for Binance institutional clients through bank triparty or Ceffu custody solutions. These mechanisms enhance the attractiveness of tokenized cash instruments as collateral assets, expanding their utility beyond mere passive holdings.
Forecasts for achieving a $10 billion valuation by December rely largely on the growth trajectory of participating asset classes like BUIDL, WTGXX, BENJI, OUSG, and USYC, which are expected to expand by 8% to 10% over the next few months. This growth could contribute an additional $600 million to $800 million to the total. With contributions from newer share classes such as Fidelity’s and ongoing performance in existing funds, the necessary momentum for meeting market goals seems attainable.
An optimistic scenario could push valuations between $10.8 billion and $11.5 billion, contingent upon the entrance of two additional sizable brands or significant asset allocations in the fourth quarter. A more conservative outcome, estimating around $9.1 billion to $9.6 billion, could materialize if front-end yields fall and minting activity slows.
Regardless of the outcome, the operational infrastructure appears to be strengthening. Fidelity’s OnChain Class exemplifies the balance between on-chain ownership tracking, compliance with money market regulations, and traditional custody standards, thereby laying a foundation for future issuances.
Attention will shift toward three critical metrics as the year progresses: the number of on-chain holders, net minting activity tracked by RWA.xyz, and new SEC filings for OnChain classes. Sustaining a pace of $600 million to $800 million in monthly net mints could well lead to a successful $10 billion valuation for tokenized U.S. Treasuries by the end of the year.
