BUIDL & BENJI: Tokenized T-Bill Yields 2026

Last updated: October 22, 2026. Tokenized U.S. Treasury funds held about $14.40 billion in distributed value across 119 assets on October 22, 2026, according to rwa.xyz, down 3.53% from 30 days earlier. They have become the on-chain equivalent of money market funds; for the money-market framing, see our guide to tokenized money market funds.

Led by Circle's USYC, Ondo's USDY, BlackRock's BUIDL and Franklin Templeton's Benji funds, these products pass through short-term Treasury yields, with 24/7 settlement, fractional ownership and growing DeFi use. The category's average 7-day APY was 3.59% on October 22, 2026 (rwa.xyz).

This guide ranks the top 10 tokenized Treasury funds in 2026 by AUM, yield, accessibility, and DeFi integration, helping investors find the right product for their risk profile, minimum investment, and chain preference.

Key Takeaways

Tokenized U.S. Treasury funds held about $14.40 billion across 119 assets on October 22, 2026 (rwa.xyz).
Circle USYC (about $2.39 billion), Ondo USDY (about $2.36 billion) and BlackRock BUIDL (about $2.17 billion) were the three largest funds that day (rwa.xyz).
Franklin Templeton's Benji platform held about $2.5 billion across four tokens, led by iBENJI at about $1.71 billion (rwa.xyz).
The category average 7-day APY was 3.59% (rwa.xyz), so yields track short-term T-bill rates and move with Fed policy.
Hashnote USYC and Circle USYC are the same fund: Circle acquired Hashnote on January 21, 2025 (Circle).

What Is a Tokenized Treasury Fund?

A tokenized Treasury fund is a blockchain-based token that represents ownership in a fund holding U.S. Treasury bills, notes, or repurchase agreements. Investors deposit stablecoins such as USDC or USDT, receive tokenized fund shares in return, and earn government-backed yield automatically via smart contract, no brokerage account, no settlement delays, no business-hours restrictions.

The structural advantage over holding idle stablecoins is that a standard stablecoin pays its holder nothing, while a tokenized Treasury fund passes through T-bill income, about 3.59% on average across the category on October 22, 2026 (rwa.xyz). As covered in our Q1 2026 Stablecoin Report, that gap has pulled DAO treasuries, DeFi protocols and institutions into the category.

Before evaluating individual products, it is worth understanding the two structural approaches to yield distribution that divide the market:

1. Rebasing tokens...

...such as BUIDL and BENJI maintain a stable $1.00 price and distribute yield by minting new tokens at regular intervals, typically monthly or daily. This model simplifies DeFi collateral pricing and protocol accounting since smart contracts can assume a constant $1.00 value without complex net asset value tracking. The tradeoff is that each yield distribution is likely a taxable income event.

2. Yield-bearing tokens...

...such as Ondo USDY and Circle USYC keep token supply constant while the price appreciates daily as yield accrues. This approach produces a single capital gain event on sale rather than multiple taxable income events throughout the holding period, making it more tax-efficient for long-term holders. The tradeoff is that DeFi integrations require more sophisticated NAV-aware pricing oracles.

Understanding which model fits your use case is the most important decision before choosing a product. For DAO treasuries and DeFi protocol reserves that need stable $1.00 collateral, rebasing funds win. For individual investors focused on tax efficiency and long-term yield accumulation, yield-bearing tokens have the edge.

The Institutional Heavyweights: BUIDL and Circle USYC Lead by AUM

1. BlackRock BUIDL (BlackRock USD Institutional Digital Liquidity Fund)

BlackRock's BUIDL was the third-largest tokenized Treasury fund on October 22, 2026, with about $2.17 billion in value, behind Circle USYC and Ondo USDY (rwa.xyz). It launched in March 2024 as BlackRock's first tokenized fund on a public blockchain, tokenized by Securitize (Securitize, November 14, 2025).

BUIDL is a rebasing fund that maintains a stable $1.00 price, distributing yield as newly minted tokens. The underlying strategy invests in short-term U.S. Treasury bills and repurchase agreements, applying the same active management techniques used by large money market funds: maturity laddering to capture different points on the yield curve, strategic participation in weekly Treasury auctions, and dynamic allocation between overnight and term repos to minimise cash drag.

Chains: Ethereum, Arbitrum, Aptos, Avalanche, Optimism, Polygon, Solana and BNB Chain, which Securitize added on November 14, 2025 (Securitize).

Management fee: set by share class; see the fund documents on Securitize.

Net yield: tracks short-term Treasury and repo rates; check the current rate on Securitize. BUIDL pays daily dividends (Securitize).

Access: qualified purchasers only; issued via Securitize with full KYC and AML requirements; institutional minimum investment.

DeFi and exchange use: Binance accepts BUIDL as off-exchange collateral for trading (Securitize, November 14, 2025), and the fund is used as reserve collateral by several DeFi protocols. The stable $1.00 price makes it simple to value as collateral.

Best for: institutional treasury management, DAO reserves and DeFi protocol collateral that needs a stable $1.00 price.

Tax note: daily dividend distributions are likely taxable income events in the U.S.; confirm treatment with a tax adviser.

2. Circle USYC (US Yield Coin)

Circle USYC is a yield-bearing token backed by short-duration U.S. Treasuries and money market instruments. Unlike BUIDL's rebasing model, USYC's price appreciates daily as yield accrues, making it a more tax-efficient structure for holders who want to accumulate yield without triggering regular income recognition.

USYC was the largest tokenized Treasury fund on October 22, 2026, at about $2.39 billion (rwa.xyz). Circle acquired its issuer, Hashnote, on January 21, 2025 and said it would integrate USYC with USDC so holders can move between yield-bearing collateral and cash (Circle).

DeFi integration: used as collateral in lending and structured products; increasingly integrated into DeFi protocols that support yield-bearing token collateral with NAV-aware pricing.

Best for: institutional investors who prefer the price-accrual yield model for accounting and tax simplicity; DeFi protocol treasuries comfortable with NAV-tracking collateral.

3. Hashnote USYC (Now Part of Circle)

Earlier versions of this guide listed Hashnote USYC separately. Circle acquired Hashnote, the issuer of USYC, on January 21, 2025, so Hashnote USYC and Circle USYC are the same fund (Circle). At the time, Circle said USYC had $1.52 billion deployed as of January 15, 2025, citing rwa.xyz (Circle).

Best for: see Circle USYC above; existing Hashnote USYC holders hold the same token now operated by Circle.

Retail Accessibility Shines With Franklin Templeton BENJI

4. Franklin Templeton BENJI (Franklin OnChain U.S. Government Money Fund)

Franklin Templeton's Benji platform held about $2.5 billion across four tokens on October 22, 2026, with BENJI itself at about $668 million and the iBENJI share class at about $1.71 billion (rwa.xyz). BENJI is backed by the Franklin OnChain U.S. Government Money Fund, a registered U.S. fund, which makes it the most traditionally regulated option in the top tier.

Like BUIDL, BENJI is a rebasing token that keeps a $1.00 price and pays yield as new tokens. Franklin Templeton's scale as a large asset manager supports institutional execution on the underlying Treasury and repo purchases.

Chains: Stellar (native chain), Polygon, Ethereum.

Management fee: see the fund prospectus on the Franklin Templeton Benji site.

Net yield: tracks the fund's government money market rate; check the current 7-day yield in the fund documents.

Access: available to accredited investors in the U.S. and non-U.S. retail investors in many jurisdictions; lower barrier to entry than BUIDL's institutional-only access.

DeFi composability: designed for hybrid models including collateralised lending and DAO treasury deployment. The stable $1.00 structure integrates cleanly with most DeFi protocols, and BENJI's regulatory status as a registered fund gives compliance-conscious institutions comfort that no other product in this list fully matches.

Best for: DAO treasury managers, protocol reserve operators, and retail-accessible investors who want institutional-quality execution at the lowest available fee. Also the strongest choice for investors who prioritise regulatory clarity above all else.

Tax note: monthly rebases generate approximately 12 taxable income events per year in the U.S., consistent with BUIDL's treatment.

5. WisdomTree Government Money Market Digital Fund

WisdomTree brings its ETF infrastructure to tokenized Treasuries. Its Treasury Money Market Digital Fund (WTGXX) held about $765 million on October 22, 2026 (rwa.xyz), and WisdomTree had seven tokenized funds tracked on the platform.

WisdomTree's positioning appeals to traditional investors already familiar with its ETF products who want a tokenized extension of known infrastructure with the backing of a recognised brand in regulated financial products.

Access: accredited investors; compliance layer mirrors WisdomTree's established ETF regulatory framework.

Best for: traditional investors entering tokenized Treasuries who want a familiar institutional name; wealth managers seeking regulated on-chain alternatives to standard money market funds.

6. Superstate USTB

Superstate USTB is a tokenized Treasury product built specifically for DeFi-native investors who want transparent, auditable, on-chain exposure to U.S. Treasuries. Superstate's emphasis on on-chain transparency and auditability distinguishes it from the more traditionally structured funds in this list.

USTB is Ethereum-based and designed for DeFi protocol integration, making it a natural fit for protocol treasury managers who want Treasury yield with maximum composability rather than the institutional wrapper that products like BUIDL require.

Best for: DeFi protocol treasuries and sophisticated on-chain investors who prioritise transparency and auditability over brand-name institutional backing.

Highest-Yielding Options: Ondo Finance Takes the Lead

7. Ondo USDY (Ondo U.S. Dollar Yield Token)

Ondo USDY held about $2.36 billion on October 22, 2026, making it the second-largest tokenized Treasury product (rwa.xyz). DefiLlama showed about 3.7% APY on the Ethereum pool the same day (DefiLlama).

USDY is a yield-bearing token: the price appreciates daily via a dynamic rate oracle that applies exponential compounding based on underlying Treasury and bank deposit yields. The supply remains constant while token price increases, meaning the yield is embedded in price appreciation rather than token distributions. This produces a single capital gain event on sale rather than regular taxable income, making it meaningfully more tax-efficient for long-term holders than BUIDL or BENJI.

USDY is sold under a Regulation S structure to non-U.S. investors, and fee and holding-period terms are set by Ondo. Check the current terms on the Ondo USDY page before buying.

Chains: DefiLlama tracked USDY pools on Ethereum, Stellar, Sei, Solana and Sui on October 22, 2026 (DefiLlama).

DeFi integration: USDY is integrated into several Solana and EVM DeFi protocols as collateral. For how DeFi protocols handle yield-bearing tokens in pools, see our guide on best liquidity pools for stablecoin pairs in 2026.

Access: non-U.S. retail investors and qualified purchasers; lower barriers than BUIDL or OUSG.

Best for: non-U.S. retail investors seeking maximum yield on Treasury exposure, DeFi participants using yield-bearing Treasury tokens as collateral, and long-term holders who want tax-efficient yield accumulation.

8. Ondo OUSG (Ondo Short-Term U.S. Government Bond Fund)

OUSG is Ondo's institutional-tier tokenized fund, holding about $320 million on October 22, 2026 (rwa.xyz). A large part of its assets sits in tokenized money market funds such as BUIDL, giving it indirect exposure to the same short-term Treasury strategy.

Minimum investment: set by Ondo for qualified purchasers; check the OUSG page.

Yield: competitive with BUIDL given its underlying allocation to the same assets.

DeFi composability: integrates with lending protocols for collateralised use cases; structured for institutional DeFi rather than retail access.

Best for: DeFi-native institutional participants who want structured access to short-term Treasuries via a regulated wrapper with a lower minimum than direct BUIDL access requires.

9. Backed Finance bIBIT / bC3M

Backed Finance takes a different approach: rather than running a bespoke fund, Backed issues tokens that track existing listed ETFs and bonds, so the token represents a familiar underlying product. Its Treasury-linked tokens were not among the largest funds on rwa.xyz on October 22, 2026.

Backed is Swiss-based and its tokens are aimed at non-U.S. investors. Check the prospectus for each token to confirm the exact underlying ETF or bond.

Structure: yield-bearing token with price appreciation.

Access: non-U.S. investors; Swiss regulatory wrapper; no U.S. accredited investor requirement.

Best for: non-U.S. investors who want ETF-backed tokenized Treasury exposure with transparent underlying assets and European regulatory familiarity.

10. State Street Galaxy SWEEP (OnChain Liquidity Sweep Fund)

The State Street Galaxy OnChain Liquidity Sweep Fund (SWEEP) held about $164 million on October 22, 2026, on Solana, with Galaxy Digital as the listed platform (rwa.xyz). It is one of the newer institutional entrants and is designed as a cash sweep product for on-chain investors.

State Street and Galaxy give SWEEP institutional credibility that compliance departments already recognise, even though it is smaller than the category leaders.

Best for: institutional investors who want a tokenized cash sweep product from established traditional finance names.

Fund Data as of October 2026

Fund	Issuer	AUM (Oct 22, 2026)	7d yield	Chains	Structure
USYC	Circle	$2.39B	Issuer page	Not listed	Yield-bearing
USDY	Ondo Finance	$2.36B	3.7% (DefiLlama, Ethereum)	Ethereum, Stellar, Sei, Solana, Sui	Yield-bearing
BUIDL	BlackRock / Securitize	$2.17B	Issuer page	8 incl. Ethereum, Solana, BNB Chain	Rebasing ($1.00)
iBENJI	Franklin Templeton	$1.71B	Issuer page	Not listed	Rebasing ($1.00)
WTGXX	WisdomTree	$765M	Issuer page	Not listed	Money market
BENJI	Franklin Templeton	$668M	Issuer page	Not listed	Rebasing ($1.00)
USTB	Superstate	$581M	Issuer page	Not listed	Yield-bearing
OUSG	Ondo Finance	$320M	Issuer page	Not listed	Fund token
SWEEP	State Street / Galaxy	$164M	Issuer page	Solana	Fund token

Sources: AUM from rwa.xyz Treasuries, read October 22, 2026; USDY yield and chains from DefiLlama; BUIDL chains from Securitize, November 14, 2025. Per-fund 7-day yields on rwa.xyz require a login, so check each issuer page. Category average 7-day APY was 3.59%.

2026 Trends Shaping Tokenized Treasury Funds

1. Market growth acceleration.

Tokenized U.S. Treasury funds held about $14.40 billion on October 22, 2026, down 3.53% over 30 days (rwa.xyz). For the wider asset class, see our guide to real-world asset tokenization.

2. Multi-chain expansion.

BUIDL runs on eight networks (Securitize) and DefiLlama tracks USDY on Ethereum, Stellar, Sei, Solana and Sui (DefiLlama). Treasury liquidity is no longer Ethereum-only, and the growth of Solana as a stablecoin settlement layer, covered in our Stablecoin Payment Rails 2026 guide, is pulling Treasury tokens onto that network.

3. DeFi composability as a key differentiator.

Funds used as perpetual futures collateral on Drift, in lending protocols on Kamino and Aave, and in DAO governance vaults are capturing the most inflows. The ability to earn Treasury yield while simultaneously using the position as collateral for DeFi activity is the 2026 use case that no traditional money market fund can replicate.

4. Regulatory tailwinds.

The GENIUS Act and broader U.S. stablecoin regulatory clarity are extending institutional confidence into Treasury tokens. The CLARITY Act stablecoin yield compromise reached in May 2026 draws a clear line between passive bank-like yield (restricted) and activity-based rewards (permitted), which tokenized Treasury funds navigate cleanly given their underlying government security backing.

5. Market concentration.

The top three funds (USYC, USDY and BUIDL) held about $6.9 billion of the roughly $14.40 billion total on October 22, 2026 (rwa.xyz), so concentration is high. Differentiation increasingly comes from chain availability, DeFi integration and yield mechanism rather than the underlying assets.

6. Interoperability gap.

A BUIDL token on Ethereum and a BENJI token on Stellar cannot easily interact or serve as interchangeable collateral. Industry efforts toward standardised token formats and cross-platform settlement are underway but have not yet produced a unified framework. This remains the primary structural limitation on the sector's next growth phase.

7. DAO treasury shift.

DAOs are increasingly replacing native token staking with Treasury tokens for capital preservation. For any treasury manager considering this shift, our guide on stablecoin risks enterprises need to understand in 2026 provides the risk framework to evaluate tokenized Treasury allocation alongside reserve and redemption considerations.

Conclusion

Tokenized Treasury funds have moved from crypto experiment to institutional infrastructure, with about $14.40 billion in tokenized U.S. Treasury funds on October 22, 2026 (rwa.xyz).

Circle USYC and Ondo USDY now lead by size, BlackRock BUIDL leads on brand and exchange collateral use, and Franklin Templeton's Benji funds lead on registered-fund regulation.

The right choice depends on your investor category, preferred chain, yield mechanism, and DeFi use case, but across all ten products, the core value proposition is the same: U.S. Treasury yield, on-chain, 24/7, with no brokerage account required.

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FAQs:

What is a tokenized Treasury fund?

A tokenized Treasury fund is a blockchain-based token that represents ownership in a fund holding U.S. Treasury bills, notes or repurchase agreements. Holders earn short-term government yield on-chain; the category averaged a 3.59% 7-day APY on October 22, 2026 (rwa.xyz).

What is the difference between a rebasing tokenized Treasury fund and a yield-bearing one?

The difference between a rebasing tokenized Treasury fund and a yield-bearing one is that a rebasing fund like BUIDL or BENJI maintains a stable $1.00 price and distributes yield by minting new tokens at regular intervals, while a yield-bearing fund like Ondo USDY keeps the token supply constant and lets the price appreciate daily as yield accrues, resulting in a single taxable event on sale rather than multiple taxable income events throughout the holding period.

What is the largest tokenized Treasury fund in 2026?

On October 22, 2026, the largest tokenized Treasury fund was Circle's USYC at about $2.39 billion, followed by Ondo USDY at about $2.36 billion and BlackRock BUIDL at about $2.17 billion (rwa.xyz).

What is the difference between BUIDL and BENJI as tokenized Treasury funds?

The difference between BUIDL and BENJI is that BUIDL is issued by BlackRock via Securitize and is restricted to qualified purchasers, while BENJI is issued by Franklin Templeton, is backed by a registered U.S. government money fund, and is open to a wider range of investors. Fees differ by share class, so compare the current fund documents.

Which tokenized Treasury fund pays the most in 2026?

Yields across tokenized Treasury funds sit close together because they hold similar short-term assets; the category average 7-day APY was 3.59% on October 22, 2026 (rwa.xyz). Ondo USDY showed about 3.7% on DefiLlama that day (DefiLlama). Compare net yield after fees and access limits rather than headline rates.

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.