According to a report by RWA.xyz, tokenized treasury assets have increased by 80%, posing new challenges for the stablecoin market.
Surge of Tokenized Assets
The RWA.xyz report indicates that tokenized treasury products have increased 80% to $7.4 billion in 2025. This includes treasury funds that issue their own tokens and tokenized U.S. government bonds. Notable issuers like BlackRock, Franklin Templeton, and Janus Henderson have seen their holdings triple.
Risks for Stablecoin Issuers
The growing trend towards tokenized assets poses a risk to stablecoin issuers such as Circle and Tether, as they earn revenue by holding Treasuries as collateral. If outflows from stablecoins continue, issuers may lose a key revenue source and will be pressured to offer yields on their own stablecoins to stay competitive.
Continued Demand for Stablecoins
Despite the rising interest in tokenized treasury assets, demand for stablecoins remains strong. The supply of stablecoins has steadily increased from $2.5 billion in January to $255 billion in July of 2025.
Thus, while tokenized assets show clear advantages, the demand for stablecoins also rises, making the market dynamics quite compelling.