The rise of tokenised treasuries: digitising stability in the digital age

US Treasuries have long symbolised financial stability and now technology is ushering-in a new era where security meets the dynamism of the digital age through real-world asset tokenisation (initially via money market funds). The tokenised US money market funds is flourishing and so, indirectly, Treasury notes are tokenised on public blockchains such as Ethereum, Polygon and Avalanche, surpassing $1 billion for the first time. This sector has grown nearly tenfold since January last year, showcasing the escalating interest in this innovative investment avenue. Notably, BlackRock's Ethereum-based BUIDL fund reached a tokenised value of $245 million, whilst Franklin Templeton's Franklin OnChain US Government Money Fund leads with $360.2 million in deposits. And, blockchain technology has certainly accelerated global tokenisation trends, driven by growing demand for tokenised assets amid high interest rates - particularly for safe, high-yielding Treasury bills in the US securely held and …