: : [Institution/Report] Beyond the Dollar: The Conditions for Sovereign Debt Tokenization, and
Why Korea Is the First Clean Test
Written by Sam Shim (Meritz Securities), Data supported by 100y

- Tokenized US Treasuries reached about 15.9 billion dollars in July 2026, and technology was only part of it. The dollar market had supplied a fund structure institutions were allowed to hold, demand that existed before the first token, and recurring fee income.

- Token standards, custody, and settlement are now available off the shelf, so infrastructure is no longer the constraint. Products outside the dollar are still under a tenth of tokenized government debt, and that number measures what has been built rather than what investors want.

- Demand starts with stablecoin reserves, because a coin wants its backing in its own currency and onchain. Only a tokenized government bond in that currency is both, which makes reserves the only demand proven so far, while collateral and diversification have not appeared yet.

- Korea has most of what that demand sequence needs in one market, and foreign investors can already buy its bonds. Bond sourcing and won conversion run through domestic infrastructure, and a won stablecoin already holds a tokenized Korean government bond in reserve, though only at symbolic size.

- The whole argument rests on one bet, that what is missing is the product, not the appetite. The strongest objection is that onchain capital structurally prefers the dollar, and the report sets out the evidence that would settle it stage by stage.

📱 Report Summary
🌎 Full Report

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