Foreign Investors Hold 66.9% of Tokenized US Treasuries, Chainalysis Finds
Chainalysis reported that international holders control two-thirds of tracked tokenized US Treasuries, with Italy, Portugal, and Singapore leading. The market expanded 125% year-over-year to $15.42 billion.
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Foreign Dominance in Tokenized Treasuries
Chainalysis found that foreign investors hold 66.9% of the tokenized US Treasury market tracked on-chain, according to analysis released this week. Italy, Portugal, and Singapore together represent the largest concentration of holdings among foreign jurisdictions. The finding reflects a shift in how international capital accesses US government debt, increasingly through blockchain-based instruments rather than traditional channels.
Market Expansion
The tokenized US Treasury market grew 125% over the past year to reach $15.42 billion in tracked value, per Chainalysis data. The expansion reflects growing adoption among both retail and institutional investors seeking faster settlement, lower custody friction, and 24/7 market access compared to traditional fixed-income infrastructure. The dominance of foreign holdings raises questions about the concentration of ownership and whether tokenization is reshaping capital flows into US debt markets.
Why It Matters
For Traders
Tokenized Treasury positions are increasingly offshore-weighted; liquidity and price discovery may reflect foreign market hours and redemption patterns more than US cash markets.
For Investors
High foreign participation in a US government debt instrument on-chain signals de-dollarization pressure and potential regulatory scrutiny around capital flows and sanctions enforcement.
For Builders
The 125% growth validates product-market fit for Treasury tokenization; infrastructure teams should anticipate regulatory requirements around cross-border settlement and AML compliance.
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