On-Chain Tokenized Treasury Bonds Hit an All-Time High at $14 Billion

According to Token Terminal data, as of April this year, the continuous growth of tokenized U.S. Treasury bonds on on-chain protocols has set a new record, with their total value locked reaching $14 billion. At this level of locked value, tokenized treasury bonds can generate an annualized return of $515M.

Despite volatility in the crypto market and ongoing losses in DeFi, the inflow trend of tokenized treasury bonds continues to expand. And the reason total value locked across on-chain protocols keeps rising is also that the number of wallets holding tokenized assets is steadily increasing.

Data shows that fund inflows into tokenized U.S. Treasury bonds on BNB and Solana are growing strongly, but Ethereum—thanks to its early position in money market funds and treasury bond trading platforms—remains the main platform for government bond tokenization.

In terms of issuing tokenized treasury bonds, Benji, under Franklin Templeton, is a leading tokenization engine. Over the past month, the on-chain assets of the Ethereum-based Benji fund have grown by more than 381%.

However, compared with other on-chain assets, the audience for tokenized U.S. Treasury bonds is still relatively niche. Currently, only 33.9k wallets hold these assets—nearing the all-time high.

Based on an annualized yield of 3.68%, the $14 billion value locked can generate about $515M in returns per year.

Even though it is still unclear how the issuer and holders share the yield, the continued expansion indicates that DeFi protocols are actively seeking other tools to stabilize their financial situation.

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