Spark, the capital deployment arm of the Sky (formerly MakerDAO) ecosystem, has committed another $1 billion to tokenized U.S. Treasuries, raising its total exposure in the sector to $2.4 billion.
This move positions Spark as the dominant player in a fast-growing segment of decentralized finance - real-world asset (RWA) tokenization - with the protocol now accounting for over two-thirds of the market's $3.5 billion in tokenized Treasury assets.
The new capital is being distributed among the same three protocols that received funding during Spark’s earlier $1 billion Tokenization Grand Prix: BlackRock/Securitize’s BUIDL fund, Superstate’s USTB, and Centrifuge’s Anemoy-backed JTRSY. The strategic continuity underscores Spark’s emphasis on stability, liquidity, and regulatory alignment within its expanding on-chain treasury framework.
According to governance documents, the expanded commitment - ratified by a Sky DAO vote on April 3 - deploys $500 million to BlackRock’s BUIDL, $300 million to Superstate’s USTB, and $200 million to JTRSY. These allocations mirror those of the original initiative, suggesting that Spark’s early RWA deployment strategy remains intact and focused on short-duration, U.S. government-backed debt instruments.
BUIDL, issued via Securitize, holds the largest share of the market with approximately $2.81 billion in total assets. Superstate’s USTB has roughly $490.7 million under management, while JTRSY controls around $237.1 million, according to the latest DeFiLlama data. All three funds operate with a reinvestment model based on rolling over maturing Treasuries, aiming to optimize short-term yield while maintaining high liquidity.
Market Implications and Institutional Context
This massive capital injection arrives amid growing global momentum for institutional-grade tokenized assets, especially in the Asia-Pacific region and select emerging markets. As regulators and capital allocators explore on-chain representations of traditional financial products, U.S. Treasuries - seen as a low-risk, high-demand collateral type - are becoming the de facto reserve asset within DeFi ecosystems.
Spark’s $2.4 billion allocation is a significant statement about the future of decentralized finance: one that moves away from high-volatility, crypto-native collateral and toward a hybrid structure rooted in traditional financial instruments.
According to data from RWA.xyz, total tokenized Treasuries across DeFi protocols exceed $3.5 billion. With Spark’s recent expansion, the protocol now controls more than two-thirds of that figure - surpassing other prominent RWA strategies employed by protocols such as Ondo Finance, Maple, and Backed.
From MakerDAO to Sky
Spark is a core component of the recently rebranded Sky ecosystem, which evolved from MakerDAO’s overhaul announced in August 2024. The governance redesign introduced modular units known as “Stars,” of which Spark is one. As a standalone Star, Spark is responsible for executing Sky’s RWA investment thesis and managing its on-chain liquidity provisioning infrastructure.
Spark’s Liquidity Layer - the backbone of this strategy - supports multiple stablecoins across various networks, including USDC, USDS, sUSDS, USDe, and sUSDe. It automates deployment and rebalancing of stablecoin reserves into yield-generating strategies, with a preference for tokenized short-term sovereign debt.
In Q1 2025, Spark reported roughly $40 million in revenue and launched a USDC Savings Vault product that attracted over $41 million in deposits. The protocol also expanded to the Base and Arbitrum networks, widening its multi-chain footprint.
The Tokenization Grand Prix: Process and Selection
Launched in mid-2024, Spark’s Tokenization Grand Prix functioned as an open application and evaluation process for asset issuers seeking access to DeFi-native Treasury allocations. A total of 39 applications were reviewed by Steakhouse Financial, a Spark-affiliated firm specializing in RWA underwriting and liquidity modeling.
Key evaluation criteria included:
Liquidity profile and redemption frequency On-chain pricing transparency Custodial and compliance practices Token structure and smart contract risk Alignment with Spark’s goal of low-volatility, yield-bearing assets
Ultimately, three issuers were selected: BlackRock (via Securitize), Superstate, and Centrifuge (via Anemoy). These issuers aligned closely with Spark’s risk management framework and strategic emphasis on capital efficiency and regulatory durability.
Regulatory and Operational Considerations
While the growth of tokenized Treasuries is accelerating, it is not without compliance friction. Spark explicitly acknowledged that differing state-level regulations in the U.S., combined with complex jurisdictional risk, continue to shape how and where tokenized securities can be deployed.
In parallel, the European Union’s Markets in Crypto-Assets (MiCA) framework is expected to raise ongoing operational costs for token issuers and intermediaries, even as it offers regulatory clarity.
As institutional and sovereign actors continue to test on-chain versions of Treasuries, protocols like Spark are setting precedents not just in yield sourcing but also in compliance integration. By deploying capital into fully compliant vehicles issued by registered broker-dealers like Securitize and entities working toward regulatory registration, Spark is effectively bridging the gap between DeFi liquidity and traditional fixed-income securities.
Competitive Landscape
Several other DeFi-native and hybrid TradFi protocols are also investing heavily in the tokenization of government bonds, albeit at a smaller scale.
Ondo Finance has issued tokenized Treasury products and recently partnered with BlackRock for distribution. Maple Finance has begun offering institutional lending facilities backed by tokenized real-world collateral. Backed and OpenEden have developed alternative frameworks for issuing Treasury-backed tokens on Ethereum and other chains.
Still, none of these players currently rival Spark’s total AUM or its integrated liquidity model, which leverages Maker/Sky’s deep stablecoin reserves for seamless capital deployment.
Why Treasuries?
U.S. Treasuries offer several benefits as on-chain reserves:
-
Yield Predictability: With rates currently elevated, short-term Treasuries can provide annualized yields over 4.5%, offering a non-volatile income stream.
-
Risk Offsetting: In contrast to volatile crypto assets, Treasuries offer an anchor of stability, making them ideal for protocols managing stablecoin pegs or backing lending operations.
-
Regulatory Favorability: As sovereign debt instruments, Treasuries carry lower scrutiny than corporate bonds or synthetic assets, making them a logical first step for regulated on-chain finance.
Spark’s approach to deploying capital into these instruments marks a strategic evolution in DeFi’s efforts to integrate real-world assets in a sustainable, scalable manner.
Final thoughts
The broader trend of tokenization appears poised to grow significantly in 2025, with institutions such as BlackRock, Franklin Templeton, and JPMorgan all exploring blockchain-based representations of traditional assets. The global tokenized securities market could reach into the trillions if regulatory rails continue to mature and liquidity conditions normalize.
Spark’s leading share of the U.S. Treasury tokenization market makes it a bellwether for DeFi’s RWA ambitions. As protocols increasingly look for capital-efficient, risk-adjusted returns, U.S. government-backed RWAs may become a standard reserve asset class in decentralized systems.
That said, questions remain about long-term liquidity, systemic risk, and the sustainability of multi-protocol coordination in integrating these assets. Governance, auditing, and redemption protocols will be key to preserving trust in this emerging asset layer.