Top Tokenized Treasury Products by AUM (2026)

Tokenized Treasury products now hold $11.35B in on-chain AUM across 65 products tracked by RWA.xyz, ranked here by AUM with yield, fees, liquidity terms, and investor eligibility as of March 2026.

Introduction

Tokenized U.S. Treasuries are digital tokens on public blockchains. Each token represents a claim on underlying U.S. government debt, placing it in the category of tokenized real-world assets (RWAs). Regulated custodians such as BNY Mellon hold the actual securities off-chain.

Asset managers acquire U.S. government securities and deposit them with custodians. Transfer agents mint tokens on-chain and credit them to whitelisted wallets. Whitelist checks satisfy know-your-customer (KYC) and anti-money-laundering (AML) rules.

This article ranks leading tokenized Treasury products by assets under management (AUM). It covers structural types, yields, fees, liquidity terms, regulatory frameworks, risks, and market data tracking tools. Total on-chain AUM reached $11.35 billion as of 15 March 2026.

How do tokenized U.S. Treasuries work on public blockchains today?

A tokenized U.S. Treasury is a digital token on a public blockchain. Each token represents a legal claim on underlying U.S. government debt, placing it in the category of tokenized real-world assets (RWAs). The actual securities remain off-chain, held by a regulated custodian.

A regulated asset manager acquires U.S. government securities — such as Treasury bills (T-bills) and repurchase agreements — and deposits them with a qualified custodian such as BNY Mellon. A transfer agent — a firm licensed to maintain the official record of share ownership — mints tokens on-chain and sends them to an investor's approved wallet address. Wallet addresses must first pass whitelist checks that satisfy know-your-customer (KYC) and anti-money-laundering (AML) rules before any tokens transfer. BlackRock's BUIDL fund, launched on Ethereum in March 2024, uses Securitize as its transfer agent and mints one token per one U.S. dollar of net asset value (NAV).

Three structural types exist in the tokenized Treasury market. Tokenized fund shares — such as BlackRock's BUIDL and Franklin Templeton's FOBXX — represent direct on-chain ownership of a registered investment fund; one token equals one fund share. Tokenized fund wrappers, such as Ondo Finance's OUSG, hold existing fund shares inside a smart contract — a self-executing program on the blockchain — and issue a separate ERC-20 token (a standard programmable token format on Ethereum) to investors. These structural differences affect custody arrangements, redemption timelines, and investor eligibility requirements.

Table 1: Structural overview of leading tokenized Treasury products

_{Data: March 2026}

Which tokenized Treasury products currently have the largest AUM on-chain?

The total on-chain tokenized Treasury market reached approximately $10.8 billion as of February 2026, up from $8.9 billion on 1 January 2026. By early March 2026, that figure had expanded further to approximately $11.13 billion.

The AUM ranking shifted in January 2026 when Circle's USYC edged past BlackRock's BUIDL to become the largest single tokenized Treasury product. As of 22 January 2026, USYC held $1.69 billion in AUM against BUIDL's $1.68 billion — a margin of roughly $6 million. A key caveat applies to that figure: on-chain data from Arkham Intelligence showed that Binance held approximately $1.43 billion in USYC, representing 94% of total USYC supply at that point. BUIDL, by contrast, had 103 unique holders as of the same date, making its distribution broader across institutional counterparties.

Franklin Templeton's FOBXX and Ondo Finance's OUSG and USDY rank among the next tier of products by AUM. Ondo's OUSG reported over $400 million in AUM as of January 2026. The ranking table below presents a snapshot based on data from RWA.xyz and issuer disclosures. These figures change as investors subscribe and redeem daily, so the rank order may differ from the date of publication.

Table 2: Top tokenized Treasury products by on-chain AUM

_{Data: RWA.xyz, issuer disclosures, March 2026}

What main product types exist among tokenized Treasuries today?

Three core product types cover most of the tokenized Treasury market: tokenized money market funds, tokenized fund wrappers, and direct bond tokens. Each type differs in how it holds the underlying government securities, how it distributes yield, and how quickly investors can redeem.

Tokenized money market funds (TMMFs) hold a portfolio of short-term instruments — primarily U.S. Treasury bills (T-bills), repurchase agreements, and cash equivalents — inside a regulated fund structure. The fund manager maintains a constant net asset value (NAV) of $1.00 per token and distributes accrued interest to investors daily, either as additional tokens or as a cash payment. BUIDL invests 100% of assets in cash, U.S. T-bills, and repurchase agreements collateralized by Treasury securities, targeting capital preservation over yield maximization. Franklin Templeton's FOBXX operates on the same money market fund model, with the blockchain record serving as the official shareholder register.

Tokenized fund wrappers sit one layer above TMMFs. A wrapper issues its own ERC-20 token — a standard programmable token on Ethereum — and holds shares in an underlying TMMF inside a smart contract. Ondo Finance's OUSG originally held shares in BlackRock's iShares Short Treasury ETF before migrating to hold BUIDL shares directly, allowing near-instant USDC redemptions via a Circle redemption contract. This structure lets issuers customize fees, minimum investment sizes, and liquidity terms without altering the underlying fund.

Direct bond tokenization converts individual Treasury notes or bonds into on-chain tokens, embedding coupon rates, payment schedules, and maturity dates into smart contract code. Smart contracts — self-executing programs on a blockchain — then distribute coupon payments automatically to token holders on each payment date. This type currently represents a smaller share of on-chain Treasury AUM than TMMFs, as most institutional issuers have prioritized the fund structure for regulatory familiarity and operational simplicity.

What yields, fees, and liquidity terms distinguish the top tokenized Treasury products?

Tokenized Treasury products pass through yield from the underlying U.S. government securities they hold. As of 12 March 2026, the 10-year U.S. Treasury yield stood at 4.27%, while short-duration products tracking T-bills and repurchase agreements delivered an on-chain yield band of approximately 3.33%–3.50% annually. The 10–17 basis point gap below equivalent off-chain money market funds reflects the additional cost of on-chain infrastructure: custody, smart contract audits, compliance overhead, and portfolio drag from short-duration instruments. A basis point equals one-hundredth of one percentage point.

Yield distribution methods differ by product. BUIDL distributes accrued interest daily as newly minted tokens credited directly to investor wallets, targeting approximately 4% annually as of early 2026. USYC uses a price-appreciation model instead: yield accumulates inside the token's rising NAV rather than through separate payouts, with each USYC token priced at approximately $1.11 as of early 2026. Franklin Templeton's FOBXX maintains a $1.00 constant NAV and distributes income monthly to registered wallets.

Fee structures vary considerably across the ranking. BUIDL charges a management fee of 0.50% per year, paid by the fund from its assets. FOBXX charges a management fee of 0.20% per year. USYC charges no subscription or management fee but applies a 10% performance fee on yield generated, plus a 0.05% redemption fee. Ondo Finance's OUSG carries a management fee of 0.15% per year, waived through July 2026 as the issuer prioritizes AUM growth over near-term revenue.

Table 3: Yield, fees, and liquidity terms — top tokenized Treasury products

_{Data: March 2026. Bar widths proportional to indicative yield. Sources: RWA.xyz, issuer disclosures.}

How do top tokenized Treasury issuers and protocols fit into the broader RWA landscape?

Tokenized real-world assets (RWAs) — on-chain tokens backed by traditional financial instruments such as bonds, real estate, and commodities — reached approximately $23.6 billion in total value as of early March 2026, up from $14.1 billion at the start of the year. Tokenized funds, which include Treasury products, accounted for roughly 44.5% of that total — approximately $10.5 billion — making them the single largest segment in the broader RWA market. U.S. Treasuries and commodities together represented 58% of cumulative RWA growth since January 2025, adding over $18 billion in value year-over-year.

BlackRock's BUIDL fund holds the most prominent institutional position in the Treasury RWA segment. BUIDL distributed over $100 million in cumulative dividends to token holders by late 2025 and subsequently expanded from Ethereum to six additional blockchains, including Solana and Polygon. In February 2026, BlackRock integrated BUIDL with the Uniswap decentralized exchange — a peer-to-peer trading protocol that runs on a public blockchain without a central operator — through a request-for-quote (RFQ) structure managed by Securitize, enabling compliant secondary market trading. BUIDL has also been accepted as collateral on Binance and Deribit, two major crypto derivatives exchanges, effectively converting T-bill exposure into a margin asset for institutional traders.

Other issuers have pursued integration across different layers of the on-chain financial ecosystem. Ondo Finance's OUSG holds BUIDL shares as its underlying asset and connects to DeFi protocols through a USDC redemption contract powered by Circle. Franklin Templeton's BENJI application gives retail investors direct wallet access to FOBXX on Stellar and Avalanche, while the issuer also expanded to additional chains through partnerships with DeFi platforms in 2025. Hashnote's USYC has integrated into DeFi collateral rails, which largely explains its January 2026 position as the largest tokenized Treasury product by AUM — approximately 94% of its supply at the time was held by a single institutional counterparty.

The total tokenized Treasury market crossed $10 billion in February 2026 and reached approximately $11.13 billion by early March 2026. Tokenized Treasuries grew 85% in full-year 2025, rising from approximately $4.9 billion to $9 billion. That pace of growth has positioned Treasury tokens as the primary entry point for institutional capital into the broader on-chain RWA ecosystem.

What regulatory regimes and investor eligibility rules apply to leading tokenized Treasuries?

Tokenized Treasury products sit under different regulatory frameworks depending on their domicile, fund structure, and target investor base. The two most common U.S. pathways are a full Securities and Exchange Commission (SEC) registration under the Investment Company Act of 1940 and a private offering exemption under Regulation D of the Securities Act of 1933. These two pathways produce very different investor eligibility rules.

BlackRock's BUIDL uses Regulation D Rule 506(c) — a private offering exemption that permits general solicitation but restricts participation to verified accredited investors — and additionally qualifies under Section 3(c)(7) of the Investment Company Act, which limits buyers to Qualified Purchasers. A Qualified Purchaser is an individual or family-owned entity with at least $5 million in investments, or an institutional investor with at least $25 million. BUIDL sets a minimum subscription of $5 million per investor and requires each wallet to be whitelisted by Securitize before any transfer. Ondo Finance's OUSG follows the same Qualified Purchaser standard.

Franklin Templeton's FOBXX operates under a different framework. The fund is registered under the Investment Company Act of 1940 and regulated as a money market fund under SEC Rule 2a-7 — the rule that governs daily liquidity, credit quality, and maturity limits for money market funds. Registration under Rule 2a-7 opens the fund to retail investors, not just institutions. The blockchain record on Stellar serves as the official transfer agent register, approved by the SEC as part of the fund's registration.

Outside the United States, the United Kingdom's Financial Conduct Authority (FCA) authorized the first tokenized UCITS fund — a fund structure regulated across the European Union and the UK with standardized investor protection rules — in January 2025 under its Blueprint model. The FCA published consultation paper CP25/28 in 2026, proposing final rules for tokenized fund unit registers expected in the first half of 2026. Luxembourg and Ireland offer alternative domicile options through Reserved Alternative Investment Fund (RAIF) and Qualified Investor Alternative Investment Fund (QIAIF) structures, which comply with the EU's Alternative Investment Fund Managers Directive (AIFMD).

Table 4: Regulatory regimes and investor eligibility — leading tokenized Treasury products

_{Data: March 2026. Sources: SEC filings, issuer documentation.}

What risk factors should investors consider when using tokenized Treasury products?

Tokenized Treasury products carry the credit risk of the underlying U.S. government securities plus additional risks introduced by the on-chain infrastructure layer. In March 2026, the U.S. Federal Reserve, the OCC, and the FDIC jointly confirmed that a tokenized U.S. Treasury bond carries the same credit risk weight as its conventional counterpart held in book-entry form. That guidance, however, explicitly listed custody, smart contract, and operational risks as additional exposures that do not exist in traditional Treasury ownership.

Custody and counterparty risk represent the primary off-chain threat. A tokenized Treasury token is only as secure as the custodian holding the underlying securities. If that custodian fails operationally or enters insolvency, token holders may become unsecured creditors with no direct claim on the assets. Inadequate asset segregation — where custodians mix client collateral with operational funds — creates additional insolvency exposure. Off-chain operational failures, including compromised private keys at the custodian or transfer agent level, accounted for over 70% of RWA-related losses in the first half of 2025, totalling $14.6 million.

Smart contract risk applies to all tokenized Treasury products that use on-chain code to mint, transfer, or redeem tokens. Smart contract bugs or vulnerabilities in upgrade mechanisms can freeze or misdirect token transfers, even when the underlying securities remain intact. The SEC has noted that wrapped token structures — such as those used by Ondo Finance's OUSG — introduce additional counterparty risk at the wrapper layer, separate from the risk of the underlying fund. Products spanning multiple blockchains also carry bridge risk: cross-chain messaging protocols that move tokens between networks introduce additional attack surfaces not present in single-chain deployments.

Liquidity and regulatory risks complete the main risk categories. Secondary market depth for tokenized Treasuries remains thin outside primary redemption mechanisms. BUIDL's Uniswap integration, launched in February 2026, provides one secondary market venue, but daily trading volumes in tokenized Treasury secondary markets are materially lower than those in equivalent money market fund redemption programs. Regulatory policy risk also persists: the SEC's Crypto Task Force continued collecting written submissions on tokenized securities classification in March 2026, and final rules governing transfer, custody, and redemption remain pending in multiple jurisdictions.

How can market data help compare tokenized Treasuries over time?

RWA.xyz tracks 65 tokenized Treasury products across 55,141 unique on-chain holders as of 15 March 2026, making it the most cited reference dashboard for the sector. The platform reports total tokenized Treasury AUM at $11.35 billion as of 15 March 2026, up 3.80% in seven days. Filtering by asset class, blockchain, and issuer on the platform produces time-series views that show capital flows between competing products and identify periods of concentration in individual tokens.

AUM growth data illustrates adoption patterns that individual product pages cannot capture. Tokenized Treasury AUM surpassed $9 billion in November 2025 and crossed $10 billion in February 2026 — a gain of roughly $1.1 billion in under four months. The market has grown 50 times over since early 2024, when BlackRock launched BUIDL and the sector first crossed $1 billion in AUM. Weekly AUM change percentages on RWA.xyz — currently listed at +3.80% for the seven days ending 15 March 2026 — provide a consistent benchmark for tracking inflow and outflow cycles across the ranking.

Token Terminal offers a complementary analytical layer that ranks RWA protocols by revenue, fees, and earnings multiples rather than AUM alone. That revenue-based ranking is particularly useful for wrapped product structures such as OUSG, where the wrapper issuer earns a management fee separate from the underlying fund's yield. NewsFlash's DEXPaprika API provides on-chain volume and liquidity data for Treasury tokens that trade on decentralized exchanges, such as BUIDL on Uniswap — enabling comparison of secondary market depth against primary redemption volumes.

Yield data requires its own tracking cadence. RWA.xyz publishes a seven-day average yield for each product, currently showing BENJI at 3.50% and BUIDL at 3.46% as of mid-February 2026. These figures shift as the Federal Reserve adjusts the federal funds rate — the benchmark overnight lending rate between banks — and as individual fund managers rebalance portfolio duration. Monitoring yield across the ranking table at regular intervals captures compression or expansion in the spread between competing products over time.

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