Tokenized U.S. Treasuries Go Global: U.S. Investors Hold Only 10.5% as Italy, Portugal, Singapore Dominate
TREE NEWS reports: New data from Chainalysis reveals a striking geographic shift in the ownership of tokenized U.S. Treasury assets. Among holdings where investor location can be identified, Italy accounts for 29.9% of value, Portugal 18.8%, and Singapore 18.2% — a combined 66.9%. The United States, despite being the issuer of the underlying debt, represents just 10.5% of identified holdings.
The findings underscore how blockchain-based representations of U.S. government debt are becoming a global yield instrument, attracting capital from regions with limited access to high-quality dollar-denominated fixed income. European and Asian investors are turning to tokenized Treasuries as a way to earn U.S. rates while benefiting from 24/7 settlement and fractional ownership.
Why Offshore Demand Is Surging
Tokenized Treasuries — such as those issued by Franklin Templeton, Ondo Finance, and Superstate — have seen explosive growth over the past year, with total on-chain value surpassing $2 billion. For non-U.S. investors, these products offer a rare combination of safety, yield, and liquidity that is often unavailable through local banking systems.
- Yield advantage: U.S. Treasury yields remain attractive relative to many domestic alternatives, especially in Europe and Asia.
- Access: Tokenized products lower barriers to entry, allowing smaller investors and those in capital-controlled markets to gain exposure.
- Composability: These tokens can be used as collateral in DeFi protocols, creating new yield opportunities.
Chainalysis noted that the geographic concentration is partly a function of where identifiable wallets are located, but the overall trend is clear: tokenized Treasuries are a global product, not a U.S. one.
Implications for the RWA Sector
The data carries significant implications for the real-world asset (RWA) tokenization sector. If U.S. investors remain a minority, issuers may need to tailor products to international regulatory frameworks, such as the EU’s MiCA regime, and build distribution channels in Asia and Europe. It also raises questions about how U.S. regulators will view the export of dollar-denominated debt via public blockchains.
For now, the trend reinforces the narrative that blockchain is reshaping global capital flows, enabling investors worldwide to access U.S. government debt directly. As tokenization infrastructure matures, the geographic mix of holders could shift further, but the current data suggests that the demand for tokenized Treasuries is fundamentally international.
Forward Look
Market participants will watch whether U.S. institutions increase their share as regulatory clarity improves. The launch of tokenized money market funds and increased involvement from traditional custodians could bring more domestic capital on-chain. However, the current distribution highlights a key value proposition of RWA tokenization: democratizing access to safe, yield-bearing assets for a global audience.
