Tokenized Treasury funds put money market fund shares or T-bill notes on a blockchain. Here is what the main ones are, who can actually buy them, how they compare with a T-bill ETF and a money market fund, and what happens if the issuer, custodian or chain fails.
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It is a familiar cash product, usually a government money market fund, with its shares recorded as tokens on a blockchain instead of only in a transfer agent’s database. The fund still buys Treasury bills and repurchase agreements; the token is how ownership is recorded and moved. Some products are not funds at all but notes that pay a Treasury-linked return. Their yield follows short-term rates, which the Fed steers: its target range is 3.75%–4.00%, raised on September 16, 2026 and held on October 28 (see Treasury yields).
Scope: tokenized funds holding short-term US government debt, compared with a T-bill ETF and a money market fund, for a US investor, as of October 26, 2026. It does not cover tokenized stocks (tokenized stocks explained), stablecoins, or DeFi lending. Fund availability is decided by each issuer’s documents and can change. Education, not advice.
There is no official league table. The products most often discussed are below, with a size only where the issuer publishes a dated figure; structure and eligibility come from the issuers’ own documents (Sources).
| Token | Sponsor | Issuer-reported size | What it is | Who can buy |
|---|---|---|---|---|
| BENJI (FOBXX) | Franklin Templeton | $0.84B net assets (Mar 31, 2026) | SEC-registered government money market fund (1940 Act) | US individuals via the Benji app; $20 minimum |
| WTGXX | WisdomTree | Not published per fund; WisdomTree’s tokenized funds passed $1.2B combined (Sep 2026) | SEC-registered money market fund (1940 Act) | US individuals via the WisdomTree Prime app, where available |
| BUIDL | BlackRock (via Securitize) | No dated issuer figure found | Private fund under Investment Company Act sec. 3(c)(7) | Qualified purchasers; $5 million minimum (2024–2025 terms) |
| USYC | Circle | No dated issuer figure found | Shares of a Cayman money market fund, issued via Circle International Bermuda | Non-US entities, from $100,000 |
| USDY | Ondo | $2.06B outstanding (Oct 22, 2026) | Tokenized note issued by Ondo Global Markets (BVI); not Treasuries itself | Not US persons |
| OUSG | Ondo | Not used here | Token not registered under the 1940 Act | Only under a securities-law exemption |
No official statistic counts the whole category, and private tallies differ in what they include. For scale: USDY’s $2.06 billion is 2.06 ÷ 7,944.57 = 0.026% of the $7,944.57 billion in US money market funds for the week ended October 21, 2026 (ICI). BlackRock (BLK) and Franklin Resources (BEN) are listed companies; their pages carry the company data. How this fits the wider market is in tokenization explained.
They hold similar assets; the differences are access, cost, hours and the legal wrapper. Rows show typical cases with dated examples.
| Registered tokenized fund (e.g. BENJI, WTGXX) | Private fund or note (e.g. BUIDL, USDY, USYC) | T-bill ETF (e.g. SGOV, BIL) | Government money market fund at a broker | |
|---|---|---|---|---|
| What you own | Fund shares, recorded as tokens | Private fund shares or a note claim on the issuer | ETF shares | Fund shares |
| Regulation | Investment Company Act of 1940; Rule 2a-7 | Securities-law exemptions; offshore regulators for USYC and USDY | 1940 Act ETF | 1940 Act; Rule 2a-7 |
| Who can buy | US investors who pass the app’s onboarding | Qualified purchasers or non-US persons only | Anyone with a brokerage account | Anyone with an account |
| Minimum | $20 (BENJI) | $5 million (BUIDL); $100,000 (USYC) | One share (SGOV about $100) | Set by each fund |
| Annual cost | 0.20% (FOBXX, after waiver) | See each offering document | 0.09% (SGOV); 0.1353% (BIL) | Varies by fund |
| Hours and transfer | On-chain ownership record; WTGXX trades 24/7 against USDC since Feb 2026 | Transfers 24/7 to pre-approved holders | Market hours; settles T+1 | Business days |
| Use as crypto collateral | Limited | Yes, on some venues (USYC, per Circle) | No | No |
| SIPC if held at a failed broker | Not when held in your own wallet | No | Yes, as a security at a member broker | Yes, as a security at a member broker |
| FDIC insurance | No | No | No | No |
Sources: Franklin’s FOBXX summary prospectus (August 1, 2026), BlackRock’s BUIDL launch release, Circle’s USYC pages, WisdomTree’s February 24, 2026 release, iShares and State Street fund pages. SIPC protects custody of securities at a failed member broker, not market losses; see SIPC coverage for large accounts.
The quoted figures do not establish a like-for-like yield advantage: their dates, yield conventions and underlying exposures differ. For reference, the 3-month Treasury par yield was 4.22% on October 23 (US Treasury) and SGOV showed a 3.76% 30-day SEC yield on October 22 (iShares). What can be compared is cost. Worked example, illustrative: $100,000 for one year at a 4.22% gross yield, minus each product’s annual cost:
| Route | Arithmetic | Income in a year |
|---|---|---|
| 3-month bills bought directly (no fund fee) | $100,000 × 4.22% | $4,220 |
| T-bill ETF at 0.09% (SGOV) | $100,000 × (4.22% − 0.09%) | $4,130 |
| Tokenized registered fund at 0.20% (FOBXX) | $100,000 × (4.22% − 0.20%) | $4,020 |
The simplification holds the rate flat for a year and ignores compounding, taxes and trading costs; yields change with every Fed decision. A 0.11-point fee gap is $110 a year on $100,000. In the checked fee examples, FOBXX’s 0.20% exceeds SGOV’s 0.09%; this does not rank products whose fees were not verified. For the non-tokenized options, see where to park large cash and the SGOV and BIL pages.
It depends on the wrapper, which is why “what do I own?” comes before yield. The token is only the record; the claim sits underneath.
| If this fails | Registered tokenized fund (BENJI, WTGXX) | Private fund (BUIDL) | Tokenized note (USDY) |
|---|---|---|---|
| The sponsor or token platform | Fund assets belong to the fund, not the manager; the board can replace service providers | Fund assets belong to the fund; its offering documents name the custodian and govern next steps | You are a creditor of the note issuer; recovery depends on the note terms and BVI law |
| The custodian bank | Fund assets are held in the fund’s name, separate from the bank’s own | Same principle, under the fund’s custody agreement | Depends on how the issuer holds the backing assets |
| The blockchain or smart contract | Ownership is on the transfer agent’s official record, so it can be re-created | The transfer agent (Securitize) keeps the register | Check whether the issuer keeps an off-chain register |
| Your wallet or keys | Ask whether the transfer agent can re-issue to a verified owner | Same question; only pre-approved wallets can hold | Same question; terms decide |
| A run on the product | Fund sells T-bills to pay redemptions, as any money fund does | Same, within the fund’s redemption terms | Issuer must meet redemptions from its own assets |
Use the table as a checklist, not a guarantee: each product’s offering documents decide the details. A plain money market fund or T-bill ETF at a US broker answers the same questions with decades of precedent.
They suit holders who already keep dollars on blockchains: crypto firms parking stablecoin balances, traders posting collateral, and treasurers who need to move cash outside bank hours. Circle markets USYC as yield-bearing margin collateral on supported exchanges, and WisdomTree’s registered fund has traded 24/7 against USDC since February 2026 under SEC exemptive relief (WisdomTree). Unlike stablecoins, these products pass the yield through, which is why stablecoin holders use them (see are stablecoins safe? and the yield rules in the GENIUS Act explained).
Counterexample: a 64-year-old with $300,000 of cash at a US broker. BUIDL is closed to them below qualified-purchaser status, USYC and USDY are closed to US persons, and BENJI would add an app, a wallet and a 0.20% fee. A government money fund or T-bill ETF in the existing account holds the same kind of assets with SIPC custody protection and no new platform risk. For that investor, tokenization adds steps, not return.
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Usually a share in a money market fund that holds Treasury bills and repo, recorded as a token on a blockchain. Some products are notes that pay a Treasury-linked return instead of fund shares.
Only as a qualified purchaser. BlackRock’s launch release says BUIDL is offered under Rule 506(c) and Investment Company Act section 3(c)(7), through Securitize Markets, and Securitize gave a $5 million initial minimum in January 2025 (terms at launch, March 2024, and in 2025; check current offering documents).
SEC-registered ones such as Franklin’s OnChain U.S. Government Money Fund (BENJI), with a $20 minimum in the Benji app, and WisdomTree’s WTGXX through the WisdomTree Prime app, where available. USYC and USDY are not available to US persons.
There is no official total. By issuers’ own figures, Ondo had $2.06 billion of USDY outstanding on Oct 22, 2026 and Franklin’s on-chain fund $844 million of net assets on Mar 31, 2026, against $7.94 trillion in US money market funds (ICI, week to Oct 21, 2026).
Not on cost or access for most US investors. SGOV charged 0.09% against 0.20% for Franklin’s on-chain fund, and quoted yields use different conventions, so they do not show which pays more. Tokenized funds win on 24/7 transfer and crypto collateral use.
For a registered fund, the transfer agent’s official record shows who owns shares, and the fund’s assets sit with a custodian, so ownership can be re-created. For a tokenized note, it depends on the issuer’s terms.
No. They are funds or notes, not bank deposits. Shares held in your own wallet are also outside SIPC, which covers securities held at a failed member broker.
A token issued by Ondo Global Markets (BVI) that gives economic exposure to short-term US Treasuries. Ondo states the tokens are not Treasuries, give no right to receive them, and may not be sold to US persons.
Circle’s tokenized money market fund: the on-chain form of a Cayman Islands fund that invests mainly in reverse repurchase agreements backed by US government securities. It is only for non-US entities, from $100,000.
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Educational content, not investment advice. Examples are illustrative; past performance does not guarantee future results.