Tokenized Treasury Asset Market Share Shifts in 2025
- BUIDL maintains lead, faces declining market share in 2025.
- New players WTGXX, FDIT, UST gain ground.
- Competition reshapes real-world asset tokenization landscape.
BlackRock’s tokenized treasury asset, BUIDL, remains the top choice in 2025, despite a declining market share as rivals WTGXX, FDIT, and UST gain prominence in the RWA sector.
The shift signals growing competition and evolving dynamics in the tokenized asset market, affecting institutional investments and broader adoption of cryptocurrency-backed financial products.
Real-world asset tokenization saw shifts in 2025 as BUIDL’s market share decreased. While remaining the leading tokenized treasury asset, competitors like WTGXX, FDIT, and UST reduced its dominance. This reflects a dynamic shift in market dynamics.
BlackRock’s BUIDL, managed by Brian Armstrong and Robert Mitchnick, launched in March 2024. Despite its 40% market share, rising competitors such as WTGXX are reshaping the industry’s competitive landscape, increasingly attracting institutional investors.
The growing traction of alternative tokenized assets is reshaping the financial landscape, evidenced by a $24.52 billion RWA token market size by July 2025, a 115.1% increase YoY. These shifts signal a broader acceptance among institutional investors.
Colin Butler, Global Head of Institutional Capital at Polygon Labs, noted, “We’re seeing a Cambrian explosion in real-world asset tokenization. The growth rate shows that institutions are not just testing—they’re scaling.” With a falling market share, BUIDL continues to lead but faces evolving challenges due to increased competition, regulatory updates, and changing investment strategies. Institutional flows and liquidity dynamics are pivotal in these transformations.
New entrants impacted established holdings and influenced asset allocations within the tokenized treasury sector. The industry observed a marked increase in tokenized U.S. Treasury funds, poised for sustained growth in response to macroeconomic shifts.
Forecasts suggest further financial, regulatory, and technological outcomes as institutions scale engagement in tokenization. BlackRock’s assertion that every asset can be tokenized underscores potential disruptive advancements poised to revolutionize investment paradigms in upcoming years.
