Tokenized Funds Hit $37.8 Billion as Treasury Bill Products Lead

Tokenized funds have reached $37.8 billion in market capitalization, with U.S. Treasury bill products now the largest single category at $13.5 billion, according to the latest sector tally.

The figure marks a milestone in the institutionalization of on-chain fund products. Treasury bill funds — a minor segment as recently as early 2024 — have overtaken both yield strategies, which total $11.4 billion, and credit funds, which stand at $8.3 billion. The overall tokenized-fund market has grown 940.9% since late 2023.

The speed of that rotation matters as much as its size. Treasury bill products were an afterthought in the category's early composition. They now anchor it, reflecting where issuers and allocators have chosen to deploy capital on-chain: short-duration, dollar-denominated government paper rather than experimental yield mechanics.

What does the $37.8 billion actually cover?

The number counts tokenized funds specifically. A separate tally of tokenized assets excluding stablecoins comes in higher, at $46.1 billion, and includes $12.9 billion in direct Treasury bill tokenization.

Read together, the two figures sketch the market's shape:

• Tokenized funds: $37.8 billion across all categories
• Treasury bill funds: $13.5 billion, the largest fund category
• Yield strategies: $11.4 billion
• Credit funds: $8.3 billion
• Tokenized assets ex-stablecoins: $46.1 billion, including $12.9 billion in Treasuries

The distinction isn't academic. Fund structures wrap a managed portfolio into a transferable token; direct asset tokenization puts the underlying instrument itself on-chain. The data shows both tracks scaling, with Treasury exposure running through each.

Why did Treasury bill funds take the lead?

The category's growth tracks a straightforward institutional logic. Short-duration U.S. government debt offers a yield benchmark that compliance teams, treasurers and fund boards already understand. Wrapping it in a token changes the settlement and distribution layer without changing the risk profile of what holders own.

That explains the displacement visible in the numbers. Yield strategies, the earlier centerpiece of on-chain finance at $11.4 billion, now trail the Treasury category by roughly $2.1 billion. Credit funds, at $8.3 billion, hold a more distant third position.

The 940.9% expansion since late 2023 also reframes what the sector is. What began as a niche experiment in yield-bearing tokens has, in under two years, become a distribution channel for conventional fixed income — with government paper, not crypto-native strategies, setting the pace.

What comes next for the market's structure?

The near-tenfold growth rate will not repeat indefinitely, and the composition question now outranks the headline number. If Treasury bill funds keep absorbing inflows at their current pace relative to yield and credit products, the category consolidates around regulated, dollar-denominated exposure — a market structure that looks closer to money market distribution than to decentralized finance.

The benchmarks to watch are whether the fund tally pushes past the $46.1 billion broader asset figure's growth rate, and whether credit funds — still the smallest major category at $8.3 billion — begin closing the gap as tokenized lending infrastructure matures.

By Daniel Okafor