The Convergence of Stability and Innovation

In the evolution of blockchain infrastructure, few developments have captured institutional attention as effectively as the rise of tokenized yield-bearing products. While cryptocurrencies once dominated headlines, it’s the digitization of traditional financial instruments, like treasuries and credit, that is now quietly driving adoption among financial institutions.

With global tokenized asset markets projected to grow to between $2 trillion (McKinsey, 2024) and $18.9 trillion (Ripple, 2025) by 2030, yield-bearing products such as tokenized U.S. Treasuries, money market funds, and private credit have emerged as the most compelling and compliant entry points for institutional players. 

Yield-Bearing Assets Dominate Tokenized Asset Value

According to RWA.xyz, as of May 2025, traditional income-generating assets, including private credit (with an average borrower rate of 10.16%) and U.S. Treasuries (4.14% average yield to maturity) currently make up ~90% of the total value of real-world assets (RWAs) on-chain. This dominance reflects both institutional preference and the unique advantages of these instruments in a tokenized format.

Why Yield-Bearing Products Lead Tokenization Adoption

1. Familiarity Breeds Comfort

Yield-bearing products such as U.S. Treasuries, repos, and private credit are deeply embedded in institutional portfolios. Their low volatility, reliable cash flows, and regulatory clarity make them ideal candidates for tokenization. Unlike volatile crypto assets, these instruments offer predictable returns and align with risk-managed mandates of pension funds, insurers, and asset managers.

2. Real Demand for Real Yield

In today’s uncertain macroeconomic environment, the search for secure, stable yield is more urgent than ever, even within the digital asset space. According to RWA.xyz, tokenized U.S. Treasuries have grown by over 380% year-on-year (as of May 2025), now offering an average yield to maturity of 4.14%.

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This growth is led by issuers such as Franklin Templeton, Ondo Finance, and Backed Finance. Notably, Ethereum and Stellar emerged as preferred blockchains for settlement, each hosting over one-third of the total tokenized treasury value. 

3. Improved Utility

Tokenized assets offer diverse utility, both in the decentralized finance (DeFi) space and within centralized financial (CeFi) markets.

DeFi Use Cases: 

In the DeFi space, tokenized RWAs integrate with decentralized finance protocols, creating new liquidity pathways while maintaining compliance. 

A prominent example is MakerDAO, which uses tokenized U.S. Treasuries as collateral for its decentralized stablecoin DAI, holding over $680 million in RWAs in 2023 (with $500 million in Treasuries). This integration helps enhance liquidity and capital efficiency in decentralized finance systems.

CeFi Use Cases: 

In traditional finance, tokenized assets are enabling institutional clients to use cryptocurrencies and tokenized money market funds as collateral for off-exchange transactions. 

For example, Standard Chartered and OKX have introduced a collateral mirroring program, allowing institutions to use tokenized money market funds for capital efficiency in trading. This significantly broadens the types of collateral available to institutional investors, improving both liquidity and flexibility (Standard Chartered, 2025).

Institutional Validation: Who's Leading the Charge?

Major financial players have begun issuing or integrating tokenized yield-bearing assets:

• Franklin Templeton: Their OnChain U.S. Government Money Fund holds over $706 million in tokenized shares (Franklin Templeton, April 2025).
• BlackRock: Launched BUIDL, a $2.8B tokenized money market fund, with a focus on stable yield and blockchain-native operations (RWA.xyz, May 2025).
• Ondo: Ondo’s Ondo U.S. Dollar Yield ($USDY) is a tokenized note secured by short-term US Treasuries, holds ~$630 million in assets (RWA.xyz, May 2025)

InvestaX in Action: Real-World Examples of Tokenized Yield Products

At InvestaX, we bridge traditional finance and digital infrastructure through a curated set of regulated, tokenized yield-bearing instruments:

1. InvestaX Earn

InvestaX Earn is a flagship offering providing qualified investors with access to short-term U.S. Treasury strategies in a seamless, digital-native format. Focused on capital preservation and operational simplicity, it is designed to meet the needs of institutions managing idle capital.

2. Short-Term U.S. Treasury (STBT)

STBT is a blockchain-based token backed by short-duration U.S. Treasuries and reverse repos. Issued by Matrixdock and distributed via InvestaX, it offers a secure, yield-bearing alternative to stablecoins, ideal for cash-parking strategies.

3. Mikro Kapital ALTERNATIVE eNote™

Mikro Kapital ALTERNATIVE eNote™ is a tokenized fixed-income instrument linked to microfinance and SME lending in emerging markets, offering a target return of 9.5% p.a. Offered in collaboration with Mikro Kapital and Obligate, it broadens institutional access to impact-driven private debt strategies.

4. TradeFlow’s Tokenized Trade Finance Bond

TradeFlow’s Tokenized Trade Finance Bond provides short-term exposure to commodity-backed trade finance portfolios with a target return of 8.25% p.a, traditionally out of reach for most investors. The tokenized offering is available through InvestaX and Obligate, both regulated platforms for real-world asset tokenization.

Beyond the Yield: Strategic Implications for Institutions

Tokenizing yield-bearing products does more than digitize income streams:

• Unlocks global 24/7 liquidity across interoperable platforms.
• Reduces operational and settlement costs through automation.
• Improves transparency and auditability, critical for compliance.
• Enables fractionalization, allowing broader capital access and more efficient capital allocation.

For institutions, it provides a strategic hedge against legacy inefficiencies while aligning with mandates for innovation, yield optimization, and diversification.

A Neutral Evolution, Not a Disruption

By enabling traditional financial products to exist in blockchain-native formats, platforms like InvestaX allow institutions to operate within regulated parameters while leveraging next-gen infrastructure.

In doing so, tokenized Treasuries, credit notes, and trade finance products act as gateway assets that lead to deeper institutional engagement across the RWA spectrum.

Final Notes

The data is clear: the first wave of institutional blockchain adoption is being led by yield-bearing traditional assets. These instruments provide the right mix of familiarity, regulation, and utility to serve as the industry’s entry point into digital markets.

InvestaX is proud to be a trusted partner in this evolution. With regulated infrastructure, real product offerings, and an institutional client base, we are helping reshape how yield is delivered, distributed, and deployed in the digital age.

Ready to explore tokenized yield bearing assets?

• For Issuers: Get in touch to issue, manage, and trade tokenized assets globally.
• For Investors: Sign up to access yield bearing assets available on InvestaX.

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