11th November, 2026
By Shubhii Verma
Digital Asset co-founder and CEO Yuval Rooz expects the US Treasury to begin issuing bills directly on blockchain networks within two to five years, moving tokenization beyond secondary-market products and into government debt issuance.
Speaking at Token2049, Rooz expressed confidence that the Treasury would issue securities natively through blockchain rails. Such a shift could reshape institutional tokenization, although adoption will depend on regulatory clarity, operational resilience and trust in the infrastructure.
Why Treasuries Came First
Rooz said Treasuries were the logical starting point because they underpin funding, financing and repurchase agreement markets. Compared with equities, government debt is simpler to tokenize because it lacks corporate actions, shareholder votes and multiple corporate issuers.
Treasuries also serve as core reserve assets for stablecoins and money market funds. Tokenized US Treasury products have reportedly grown around 2.5 times over the past year, reflecting institutional interest in blockchain-based government debt.
The Repo Market Opportunity
Rooz said Canton Network processes between $300 billion and $400 billion in daily repo activity, much of it through Broadridge’s Distributed Ledger Repo platform. He contrasted this with the US Treasury repo market, which he estimated at approximately $13.5 trillion per day.
The Office of Financial Research estimated average daily exposures across the broader US repo market at about $12.6 trillion in the third quarter of 2025. The scale explains why blockchain providers target settlement and collateral workflows, not just crypto trading.
DTCC Moves Toward Canton
The Depository Trust and Clearing Corporation plans to tokenize a subset of securities held in its custody on Canton. The move could connect blockchain assets with established financial infrastructure and ease adoption.
Rooz also expects money market funds and stablecoins to enable native on-chain creation and redemption, reducing dependence on conventional operating hours.
Blockwind News ANALYSIS
Direct Treasury issuance on blockchain would go beyond wrapping existing securities in tokens. It could streamline settlement, collateral mobility and liquidity, while creating new dependencies on digital infrastructure.
Institutions will not migrate critical assets based on speed or innovation alone. They require proven cybersecurity, governance, legal enforceability, recovery procedures and uninterrupted operations. The comparison with early resistance to online banking highlights a cultural hurdle, but blockchain platforms must prove reliability at national-market scale.
For now, tokenized Treasuries operate alongside traditional systems. The next five years may determine whether blockchain becomes a core issuance and settlement layer or remains an alternative distribution channel.
