Tokenized Treasury and money market products assets rose 80% to $7.4 billion, according to a report from RWA.xyz.
Stablecoin issuers may be struggling as investors and funds move from Stablecoins to a higher yield alternative. On Monday, the Financial Times covered RWA.xyz’s report on the status of asset tokenization. According to the analytics company, tokenized financial products have risen 80% to $7.4 billion so far in 2025.
These products represent Treasury funds that issue their own tokens and US government bonds. In particular, publishers like BlackRock, Franklin Templeton and Janus Henderson have seen their combined holding stripple.
You might like it too: Stablecoin Banks like Ererbor could inherit Defi’s weakest links, Web3 security companies say
The reason for the rapid growth of this asset class is its advantage over stubcoin. Normally stablecoins do not distribute yields to holders, but the tokenized Treasury does. As a result, traders are moving from stubcoin to this more profitable method.
Treasury yields are dependent on interest rates, which remains relatively high due to Federal Reserve concerns about inflation. Specifically, the US Treasury Department has now achieved approximately 4.893% in 2020.
You might like it too: Silent Revolution: Stubcoin quietly rewrites traditional financial rules | Opinion
Tokenized Treasury writes bad news for Stablecoin publishers
For Stablecoin publishers such as Circle and Tether, this trend poses a great risk. The issuer earns revenue by holding finances as collateral and collecting interest payments themselves.
If the outflow from Stablecoins to Tokenized Creaduries continues, issuers may lose their major revenue streams. Additionally, they can be pressured to provide yields on their own stable rocks to compete.
Still, despite growing interest in tokenized Treasury, demand for stable rocks is growing. Specifically, Stablecoin Supply has been steadily increasing since its launch this year, up from $2.5 billion in January 2025 to $255 billion in July 2025.
read more: Chinese authorities warn of stubcoin scam amid growing local talk
