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Tokenized money market funds have become the most capital-efficient way to put idle stablecoin and institutional cash to work in 2026, combining the yield of US Treasury instruments with the programmability, composability, and 24/7 liquidity of on-chain assets.
The tokenized Treasury market has grown to over $7 billion in total assets under management, with BlackRock BUIDL alone commanding 40% market share, and a new wave of institutional and retail-accessible products now offering yields between 4% and 4.8% APY backed by short-duration US government securities.
This guide ranks the 7 best tokenized money market funds available right now by yield, liquidity, and AUM, covering everything from institutional heavyweights to retail-accessible options and the highest-yielding products for yield maximizers.
Key Takeaways
- BlackRock BUIDL leads the tokenized Treasury market at $2.9B AUM and 40% market share.
- Franklin Templeton BENJI offers the lowest management fee in the category at 0.15% annually.
- Ondo USDY delivers the highest net yield at approximately 4.8% APY with no explicit management fee.
Ranked by yield, liquidity, and AUM · Updated May 2026
Top Institutional Heavyweights by AUM
1. BlackRock BUIDL - Largest Tokenized Treasury Fund
BlackRock BUIDL is the world's largest tokenized Treasury fund. Managed by BlackRock and distributed via Securitize, it uses a rebasing model that maintains a stable $1.00 token price and distributes yield as additional tokens to holders. With over $2.9 billion in AUM and approximately 40% of the total tokenized Treasury market, BUIDL is the benchmark against which every other product in the category is measured.
BUIDL operates across 7 blockchains, with Ethereum holding approximately 93% of supply. Net yield sits at approximately 4% to 4.5% APY in 2026, with a management fee of 0.20% to 0.50%. Access is restricted to qualified purchasers via Securitize, which limits retail participation but ensures the institutional-grade compliance and custody framework that DeFi protocols and DAO treasuries require when using BUIDL as collateral.
For context on how BUIDL fits within the broader tools powering next-generation stablecoin finance in 2026, the fund's role as a settlement layer for other tokenized products makes it structurally different from a pure yield vehicle. BUIDL is best suited for institutional treasury managers, DAO reserves, and DeFi protocols that require a stable $1.00 price peg for collateral accounting. It is also worth noting that BlackRock recently filed for two additional tokenized fund structures targeting stablecoin issuers, as covered in our piece on BlackRock's deepest tokenization push yet.
2. Hashnote USYC - Regulated Institutional Alternative
Hashnote USYC sits within the top 6 tokenized Treasury funds that collectively control approximately 88% of the market. Unlike BUIDL's rebasing model, USYC uses price accrual: the token supply stays constant while the price appreciates daily as yield accrues.
The practical consequence is a single capital gain taxable event on sale rather than recurring monthly distributions, which is more tax-efficient for institutional holders with long holding periods.
Access requires institutional KYC and AML compliance. Net yield is approximately 4% plus APY, in line with the broader category. Hashnote's regulatory standing and institutional-grade custody make USYC the most credible alternative to BUIDL for institutional investors who prefer the price-accrual yield model for accounting or tax reasons but do not want to sacrifice regulatory standing to get it.
3. Circle USYC - Tax-Efficient Institutional Yield
Circle USYC operates on the same price-accrual model as Hashnote USYC, where the token price appreciates daily rather than distributing yield as new tokens. The tax efficiency argument is the same: one taxable event on sale compared to 12 monthly taxable distribution events for rebasing fund holders. For institutional investors and DeFi protocol treasuries managing large Treasury positions over extended periods, that difference in tax treatment has meaningful impact on net returns.
Circle's institutional credibility and existing stablecoin infrastructure make USYC a natural choice for organizations already operating within Circle's ecosystem. It is best suited for institutional investors and DeFi protocol treasuries comfortable with NAV-tracking collateral who prioritize accounting and tax simplicity over a stable price peg.
Best Retail Accessibility - Franklin Templeton BENJI
4. Franklin Templeton BENJI - Lowest Fee, Registered Fund
BENJI is the Franklin OnChain US Government Money Fund, a registered investment company under the Investment Company Act of 1940. That registration gives it the most robust investor protection framework of any product in the tokenized Treasury category, including redemption rights and regulatory oversight that unregistered fund structures do not provide.
AUM sits at $700 million to $750 million, with a net yield of approximately 4% to 4.5% APY in 2026. The defining number is the management fee: 0.15%, the lowest of any major tokenized Treasury product in 2026. For long-term holders, that fee differential compounds meaningfully against BUIDL's 0.20% to 0.50% range.
BENJI operates on Stellar, Polygon, and Ethereum and is accessible to non-US retail investors and accredited US investors, making it the most broadly accessible institutional-quality tokenized Treasury product currently available. For DAO treasury managers, protocol reserve operators, and retail investors who want institutional-quality Treasury exposure at the lowest available management fee, BENJI is the most straightforward choice.
The regulatory protection angle is particularly relevant given the key stablecoin risks enterprises need to understand in 2026, where counterparty and regulatory risk remain among the most consequential variables in any on-chain yield product selection. BENJI's registered status directly addresses that risk dimension.
Highest-Yielding Options for Yield Maximizers
5. Ondo USDY - Highest Net Yield in the Category
Ondo USDY is the Ondo US Dollar Yield Token, a yield-bearing stablecoin backed by short-term US Treasuries and bank deposits. It delivers approximately 4.8% APY in 2026, the highest net yield of any major tokenized Treasury product in the category, with no explicit management fee. The combination of maximum yield and zero explicit fee makes USDY the most return-efficient product available for investors who qualify.
AUM stands at over $650 million across 5 networks including Ethereum, Solana, Arbitrum, and Aptos, giving USDY the widest multi-chain availability of any major tokenized Treasury fund. Access is open to non-US retail investors, making it more broadly accessible than BUIDL or OUSG while delivering better yield than either. Its use as collateral in perpetual futures protocols and lending markets across multiple chains reflects the depth of its DeFi integration, which connects directly to the yield optimization strategies covered in our Best Liquidity Pools for Stablecoin Pairs in 2026 guide.
USDY is best suited for non-US retail investors seeking maximum yield and DeFi participants who want yield-bearing Treasury exposure usable as protocol collateral across multiple chains.
6. Ondo OUSG - Institutional DeFi Access to BUIDL
Ondo OUSG is the Ondo Short-Term US Government Bond Fund. The majority of OUSG assets are invested in BlackRock BUIDL, making it a structured DeFi access layer for BUIDL-equivalent exposure with a lower minimum investment. The $5,000 minimum on Ethereum is substantially lower than direct BUIDL access requires, and the rebasing model aligns yield delivery with BUIDL at approximately 4% to 4.5% APY.
OUSG holds over $500 million in AUM and is targeted at DeFi-native institutional participants who want BUIDL-equivalent Treasury exposure through a regulated wrapper with DeFi composability. For organizations that cannot access BUIDL directly due to minimum thresholds but want equivalent yield and credit quality, OUSG fills that gap precisely.
7. Superstate USTB - DeFi-Native Transparency Leader
Superstate USTB is a DeFi-native tokenized Treasury product built on Ethereum, designed specifically for on-chain transparency and auditability. Where BUIDL and BENJI derive credibility from institutional brand recognition and regulatory registration, USTB derives it from full on-chain verifiability: every position, transaction, and yield accrual is auditable by any counterparty without relying on off-chain attestations.
Net yield sits at approximately 4% plus APY. USTB does not prioritize multi-chain availability or retail accessibility; it is purpose-built for DeFi protocol treasuries and sophisticated on-chain investors who make counterparty trust decisions based on on-chain evidence rather than institutional reputation. For those users, USTB's transparency architecture is a differentiator that the institutional-brand products cannot match.
Key Factors When Choosing a Tokenized Money Market Fund in 2026
1. Yield model: rebasing versus price accrual
Rebasing tokens like BUIDL and BENJI maintain a stable $1.00 price and distribute yield as additional tokens, making them suitable for collateral accounting where a stable NAV matters. Price-accrual tokens like USDY and USYC appreciate in value over time, producing a single taxable event on sale rather than monthly distributions, which is more tax-efficient for long-term institutional holders.
2. Access requirements
BUIDL requires qualified purchaser status and minimum investment thresholds that exclude most retail participants. BENJI and USDY offer the broadest non-US retail access. US retail investors face more restrictions across the category generally, a dimension that intersects with the broader regulatory picture covered in our Q1 2026 Stablecoin Report.
3. Chain coverage and DeFi composability
Investors intending to use tokenized Treasury positions as DeFi collateral or in lending protocols need products available on their target chains. USDY leads on multi-chain availability across 5 networks. BUIDL covers 7 chains but with strong Ethereum concentration at approximately 93% of supply.
4. Management fee and net yield
The headline yield matters less than the net yield after fees. BENJI's 0.15% management fee makes it the most fee-efficient product in the category for registered fund exposure. USDY charges no explicit management fee and delivers the highest gross yield, making its net return the best available for eligible investors.
5. Liquidity and redemption mechanics
Institutional products like BUIDL offer same-day or next-day redemption via Securitize. Retail-accessible products vary in redemption speed and may include queue mechanisms during high-demand periods. For treasury managers who need predictable liquidity, understanding the specific redemption mechanics of each product matters as much as the yield rate.
6. Counterparty and regulatory risk
Registered investment companies like BENJI carry the investor protections of the Investment Company Act of 1940. Other products operate under different regulatory frameworks with varying degrees of investor protection. For enterprises evaluating tokenized Treasury exposure, this dimension connects directly to the risk assessment framework in our guide on key stablecoin risks enterprises need to understand in 2026.
Comparison Table: 7 Best Tokenized Money Market Funds in 2026
| Fund | Developer | Yield Model | Net Yield | AUM | Fee | Access |
|---|---|---|---|---|---|---|
| BUIDL | BlackRock | Rebasing | 4% to 4.5% | $2.9B plus | 0.20% to 0.50% | Qualified purchasers |
| Hashnote USYC | Hashnote | Price accrual | 4% plus | Top 6 market | Not disclosed | Institutional |
| Circle USYC | Circle | Price accrual | 4% plus | Institutional | Not disclosed | Institutional |
| BENJI | Franklin Templeton | Rebasing | 4% to 4.5% | $700M to $750M | 0.15% | Non-US retail and accredited US |
| USDY | Ondo Finance | Price accrual | 4.8% | $650M plus | None | Non-US retail |
| OUSG | Ondo Finance | Rebasing | 4% to 4.5% | $500M plus | Not disclosed | Institutional DeFi |
| USTB | Superstate | Price accrual | 4% plus | Not disclosed | Not disclosed | Accredited investors |
Conclusion
BUIDL, BENJI, USDY, USYC, OUSG, and USTB collectively represent the most mature and liquid tokenized money market infrastructure available in 2026, offering institutional and retail investors a genuine on-chain alternative to traditional Treasury fund products.
The right tokenized money market fund depends on three variables: how much yield you need, what access tier you qualify for, and whether you intend to use your position as DeFi collateral. For maximum yield USDY leads the field at 4.8% APY with no explicit fee.
For lowest fees BENJI is unmatched at 0.15% inside a registered fund structure. For institutional DeFi collateral with the deepest liquidity BUIDL remains the benchmark. And for investors who want the simplicity of a registered fund with broad retail access, BENJI and USDY together cover most of the use cases the category currently serves.
Read Next
- Top 10 Stablecoin Compliance Tools in 2026
- Solana's New Payments.org Just Changed Stablecoin Payments in 2026
- The Machines Are Spending Stablecoins. Here's Where the Money Is Going.
FAQ:
1. What is a tokenized money market fund?
A tokenized money market fund is a traditional money market or Treasury fund whose shares are represented as blockchain tokens, allowing investors to hold, transfer, and use their fund positions on-chain while earning yield from underlying short-duration US government securities, with the token either rebasing to maintain a $1.00 price or appreciating in value as yield accrues depending on the fund's chosen yield distribution model.
2. What is the difference between a rebasing and a price-accrual tokenized Treasury fund?
The difference between a rebasing and a price-accrual tokenized Treasury fund is that a rebasing fund like BUIDL or BENJI maintains a stable $1.00 token price and distributes yield by minting additional tokens to holders, while a price-accrual fund like USDY or USYC holds the token supply constant and instead allows the token price to appreciate daily as yield accrues, producing a single taxable event on sale rather than recurring monthly distributions.
3. What is the best tokenized money market fund for retail investors in 2026?
The best tokenized money market fund for retail investors in 2026 is Franklin Templeton BENJI for non-US and accredited US investors who prioritize fee efficiency and registered fund protections, or Ondo USDY for non-US retail investors who prioritize maximum net yield and multi-chain availability, as USDY delivers approximately 4.8% APY across 5 chains with no explicit management fee and the widest retail access of any major tokenized Treasury product.
4. What is the difference between BlackRock BUIDL and Ondo USDY?
The difference between BlackRock BUIDL and Ondo USDY is that BUIDL is a rebasing institutional fund requiring qualified purchaser status with $2.9 billion in AUM and approximately 40% market share, while USDY is a price-accrual yield-bearing token accessible to non-US retail investors with $650 million in AUM, approximately 4.8% APY net yield, and availability across 5 blockchains including Solana and Arbitrum.
5. What is the difference between BUIDL and BENJI as tokenized Treasury products?
The difference between BUIDL and BENJI is that BUIDL is a BlackRock institutional product requiring qualified purchaser status with a management fee of 0.20% to 0.50% and $2.9 billion in AUM, while BENJI is a Franklin Templeton registered investment company accessible to non-US retail and accredited US investors with the lowest management fee in the category at 0.15% and approximately $700 million to $750 million in AUM, both maintaining a stable $1.00 rebasing token price.
6. What is the minimum investment for tokenized money market funds in 2026?
The minimum investment for tokenized money market funds in 2026 varies significantly by product: BUIDL requires qualified purchaser status and a substantial minimum via Securitize, OUSG requires $5,000 on Ethereum, BENJI has no stated minimum for eligible investors, and USDY has no minimum investment requirement for non-US retail investors, making USDY and BENJI the most accessible entry points in the tokenized Treasury category for smaller investors.
7. What is the highest-yielding tokenized money market fund in 2026?
The highest-yielding tokenized money market fund in 2026 is Ondo USDY, which delivers approximately 4.8% APY with no explicit management fee, making it the best net yield in the tokenized Treasury category ahead of BUIDL and BENJI at 4% to 4.5% APY and the Hashnote and Circle USYC products at approximately 4% plus APY.
Disclaimer:
This content is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice; no material herein should be interpreted as a recommendation, endorsement, or solicitation to buy or sell any financial instrument, and readers should conduct their own independent research or consult a qualified professional.
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