Yield-bearing assets now represent 10% of the stablecoin market, and they’re just getting started
Tokenized treasuries and on-chain yield products have carved out a nearly $5 billion niche inside the stablecoin ecosystem, reshaping how capital sits idle in crypto.
For years, stablecoins were the crypto equivalent of stuffing cash under a mattress. You parked your dollars on-chain, they held their peg, and that was the whole pitch. No yield, no upside, just stability in a market that offered precious little of it.
That era is fading fast. Yield-bearing tokenized funds now account for roughly 10% of the total stablecoin market, according to Token Terminal. With the broader stablecoin market cap hovering near $310 to $320 billion, this slice translates to a category valued at approximately $4.76 to $4.78 billion, per CoinGecko data.
From zero to $11 billion in tokenized Treasuries
Traditional financial instruments, primarily US Treasuries, are being wrapped in blockchain tokens that let holders collect yield without leaving the crypto ecosystem. The numbers tell a dramatic story. Tokenized US Treasuries surged from roughly $750 million at the start of 2024 to nearly $11 billion by early 2026.
Products like BlackRock’s BUIDL fund have become poster children for this convergence. The broader yield-bearing stablecoin segment itself grew by approximately 300% throughout 2025, a pace that outstripped most other crypto narratives during the same period.
The recent cooldown
In the second quarter of 2026, the supply of native yield-bearing stablecoins fell by 15%. That translates to a decline of more than $3.5 billion in market cap.
Why this matters beyond the numbers
RedStone’s analysis from November 2025 found that broader yield-generating crypto assets, including staking and DeFi deposits alongside tokenized products, accounted for 8 to 11% of total cryptocurrency market share.
For institutions, tokenized Treasuries offer the credit quality of US government debt with settlement times measured in seconds rather than days. They can be used as collateral in DeFi protocols, traded around the clock, and held in self-custodial wallets.
Two years ago, tokenized Treasuries were a sub-billion-dollar experiment. Today they represent a nearly $11 billion market. Yield-bearing stablecoins went from rounding error to meaningful market share in roughly the same timeframe.