Chainalysis: Italy and Portugal Buy the Most Tokenized US Treasuries
Chainalysis says the strongest demand is coming from Italy, Portugal, and Singapore, while BlackRock’s BUIDL and dollar stablecoins are driving the tokenized Treasuries market.
Key Takeaways
- Italy, Portugal, and Singapore together hold more geolocated value in tokenized US Treasuries than the United States.
- The tokenized Treasury debt market grew 125% in twelve months to $15.42 billion.
- Chainalysis sees tokenization and stablecoins as channels creating extra demand for US government debt.
Holders in Italy, Portugal, and Singapore together own a larger share of the geolocated value in tokenized US Treasuries than holders in the United States, Chainalysis reports. The US ranks fourth with 10.5%. According to the report, this shows that foreign buyers are creating extra demand for US government debt through crypto.
Tokenized Treasuries Are Growing Fast
The tokenized Treasury debt market grew 125% in the 12 months through July 1, 2026, from $6.86 billion (€6.1 billion) to $15.42 billion (€13.8 billion). US government debt was therefore the largest real-world asset on the blockchain, accounting for 42.8% of all tokenized RWA value. BlackRock’s BUIDL fund reclaimed the top spot in this category at the end of August.
The breakdown of the value shows how concentrated the market is. Italy accounts for 29.9% of the geolocated value, Portugal for 18.8%, and Singapore for 18.2%. Japan has the most geolocated holders, but together they own just 0.4% of the value. Chainalysis concludes that a small group of large foreign buyers is driving the market, while a broader retail base is building smaller positions.
Retail Buys Wholesale Debt
According to Chainalysis, tokenization makes this market more accessible because the minimum investment is lower and a US brokerage account is not needed. That means individual investors in places like Lisbon or Singapore can buy a wholesale instrument directly. Most buyers hold these tokenized Treasuries and do not use them as collateral. Treasury lending shrank by 23% over the same period, the only RWA lending category that declined.
Stablecoins also form a second channel for foreign demand for US debt. Dollar tokens from US issuers are mostly backed by short-term US government debt, so purchases of those stablecoins outside the US indirectly create demand for that debt too. Dollar stablecoins also dominate the market: they account for 99.1% of order book volume, while euro stablecoins remain stuck at 0.45%.
Why This Matters for Europe
For European crypto investors, this shows that the market for tokenized assets and stablecoins is not just about trading, but also about access to traditional financial products. The role of MiCA is notable here, because European rules have improved conditions for euro stablecoin issuers, but demand is still mostly going to dollar tokens. That highlights how strongly the dollar still dominates in crypto, even outside the US.
Chainalysis sees a similar shift in Canada. There, stablecoins made up 44% of trading in Canadian dollar order books in June 2026, up from 30% a year earlier. USDC played the biggest role in that. The Canadian Stablecoin Act received Royal Assent on March 26, 2026, but according to Chainalysis, local alternatives will only really grow if there is also market adoption.
