Tokenized treasury funds on the Ethereum blockchain have surged to more than $22.5 billion, securing nearly 72% of all blockchain-based fund assets, based on recent data from Token Terminal. This sharp uptick reflects a notable increase in institutional involvement and a rapid evolution in the structure of the on-chain financial market.
Institutional momentum pushes Ethereum’s tokenized funds upward
Ethereum’s position as a foundational blockchain for decentralized finance has turned it into the top destination for tokenized treasuries and short-term yield products. Over recent quarters, large-scale institutions have catalyzed much of this adoption.
Major financial names have played a leading role. JPMorgan launched its MONY market fund on Ethereum in 2026, following similar forays by global asset managers BlackRock and Franklin Templeton. BlackRock’s BUIDL and Franklin’s U.S. Government OnChain Money Fund both operate directly on blockchain rails, offering new levels of transparency and accessibility.
JPMorgan is an American multinational financial institution and among the world’s largest investment banks. BlackRock, the world’s largest asset manager, oversees several trillion dollars in assets globally. Franklin Templeton is a major U.S.-based investment firm recognized for its longstanding mutual fund and ETF products and recent advancements in digital asset management.
These tokenized products replicate exposure to U.S. Treasury bills and other short-term securities, providing competitive yields through blockchain infrastructure. Unlike traditional channels, these funds are directly accessible on Ethereum without the need for intermediaries. This accessibility has opened the door to automated investment strategies and new pools of capital.
Etherealize, a crypto analytics platform, pointed out that tokenized treasury funds now dominate their sector, with Ethereum holding a commanding 71.9% market share in this niche. This dynamic is reflected in market data showing Ethereum firmly ahead of other chains in terms of institutional activity and inflows.
Tokenized treasury products on Ethereum are growing rapidly with over $22.5 billion in fund assets tokenized on the network, making up 71.9% of the market share across all blockchains, according to Etherealize.
The jump from $10 billion to over $22 billion in assets under management has been especially pronounced since 2024, mirroring a broader embrace of blockchain-based money markets and the entry of traditional institutions.
From early experimentation to major market expansion
Token Terminal’s long-term chart illustrates a significant transition in the landscape of tokenized funds. Between 2021 and 2022, activity in this space remained modest, with total tokenized assets staying below the $1 billion level—reflecting a phase of limited institutional involvement and early experimentation.
Momentum began to build in late 2022 and throughout 2023 as infrastructures matured and more credible tokenized financial products emerged. Fund values steadily increased, establishing a platform for further expansion.
A turning point arrived in 2024 when total tokenized fund value exceeded $5 billion and soon after vaulted past the $10 billion mark. This shift signaled the onset of a new growth phase, marked by a steep increase in institutional engagement.
By 2025, a more dramatic acceleration occurred, with values doubling from $10 billion to over $20 billion. Although there was a brief retracement back to around $18 billion, the uptrend resumed, culminating at current highs.
The data indicate that key thresholds, such as the $10 billion and $20 billion marks, serve not only as psychological milestones but also as indicators of growing liquidity and capital allocation to on-chain treasuries.
Ethereum’s expanding ecosystem now serves core functions for tokenized short-term debt and yield-focused structures, highlighting its evolving role beyond decentralized applications. As adoption accelerates, the market structure continues to favor a closer integration between traditional and decentralized finance channels.
