Chainalysis: Italy, Portugal, Singapore Dominate Tokenized US Treasuries

Foreign Investors Dominate On-Chain US Treasury Market

While the United States government issues its debt, Americans appear to be largely observing from the sidelines as that debt moves onto the blockchain. A new report from Chainalysis reveals that foreign investors, particularly those in Italy, Portugal, and Singapore, controlled a significant majority of the geolocated tokenized U.S. Treasury value as of July 1, 2026.

According to Chainalysis’s 2026 North America report, these three nations collectively held 66.9% of the geolocated tokenized U.S. Treasury value. In contrast, American holders accounted for a mere 10.5%.

Italy emerged as the leading holder, with 29.9% of the geolocated value. Portugal followed closely with 18.8%, and Singapore secured the third position at 18.2%.

Japan, while boasting the highest number of geolocated holders at 16.4% of the total count, represented a much smaller portion of the overall value, holding only 0.4%. This suggests a large number of Japanese wallets with relatively modest balances.

For those unfamiliar with the concept, a tokenized Treasury is a digital asset on a blockchain that provides holders with exposure to U.S. government debt. It functions as a digital claim on a bond, allowing it to be stored in a cryptocurrency wallet and traded 24/7, circumventing the traditional limitations of brokerage statements.

Rapid Growth in Tokenized Treasuries

The market for tokenized U.S. Treasuries is experiencing rapid expansion. Chainalysis estimates the total value of these assets to be $15.42 billion, a substantial increase of 125% from $6.86 billion a year prior.

Tokenized Treasuries now constitute a significant portion of the broader tokenized real-world assets (RWAs) market, making up 42.8% of its total value.

Drivers of Foreign Investment

The report points to two key practical advantages attracting foreign investors to tokenized Treasuries. Firstly, tokenization effectively lowers the minimum investment thresholds, making U.S. debt more accessible. Secondly, it eliminates the necessity for overseas investors to establish U.S. brokerage accounts.

Lending Activity and Product Landscape

Despite the overall growth, lending activity in tokenized Treasuries saw a decline of 23% during the reporting period. This made it the sole RWA lending segment to experience a downturn, with other categories of tokenized real-world asset lending demonstrating greater resilience.

In terms of product offerings, BlackRock’s BUIDL fund regained its leading position among tokenized Treasury products in late August 2026.