Tokenized Treasuries 2026: BUIDL Leads; BENJI Lowest Fee

Tokenized Treasury funds reached multibillion-dollar scale by 2026, offering on-chain access to short-term U.S. government debt. BlackRock’s BUIDL led the market with more than $2.9 billion in assets, about 40% of the sector. Franklin Templeton’s BENJI had roughly $700 million to $750 million in assets and charged a 0.15% management fee, the lowest among major products. Ondo Finance’s USDY held over $650 million and posted about 4.8% APY, the highest net yield across the largest funds.

Tokenized Treasury funds convert ownership of Treasury bills, repos or money-market instruments into blockchain tokens. Investors deposit stablecoins and receive tokens that either keep a $1.00 peg and distribute yield by increasing supply, or hold supply steady while the token price rises as yield accrues. Net yields across major products in 2026 ranged roughly from 4% to 5.25% APY.

BUIDL is a rebasing fund that maintains a stable $1.00 price and distributes yield by minting additional tokens. The fund invests in short-duration Treasuries and repurchase agreements with active management and maturity laddering. BUIDL issues across seven blockchains, with about 93% of its supply on Ethereum. Access is limited to qualified purchasers through a digital issuance platform, and management fees vary by share class between 0.2% and 0.5%.

BENJI is also a rebasing product and operates as a registered investment company under the Investment Company Act of 1940. It is available on Stellar, Polygon and Ethereum and targets accredited investors and some retail investors outside the U.S., as well as DAO treasuries and protocol reserves. BENJI’s management fee of 0.15% is the lowest among the major tokenized Treasury funds.

USDY is a yield-bearing token whose price appreciates daily. The supply remains constant while an oracle-driven rate increases token value. Ondo restricts U.S. retail access under Regulation S and applies a minting delay for new deposits, typically around 45 days. During that period deposited capital accrues yield for the manager, an implicit cost that functions like an effective fee. Ondo reports net yields near 4.8% APY for USDY and supports multiple blockchains including Ethereum, Solana, Arbitrum and Aptos.

Other institutional and DeFi-focused offerings include Circle’s and Hashnote’s yield-bearing tokens for institutional investors, WisdomTree’s government money market digital fund for accredited investors, Superstate’s fully auditable DeFi-native token on Ethereum, Ondo’s institutional rebasing product OUSG with more than $500 million in AUM, Backed Finance’s ETF-wrapped tokens for non-U.S. investors, and Ondo’s SWEEP, launched in 2026 with $200 million in seed capital from State Street and Galaxy for a diversified cash-equivalent mandate.

Market concentration and operational trends were visible in 2026. Six funds controlled roughly 88% of tokenized U.S. Treasuries. Managers expanded multi-chain availability to meet different settlement preferences. Funds that integrate with lending protocols, perpetual futures platforms and DAO vaults attracted institutional and protocol treasury inflows because tokens can serve as both yield-bearing assets and collateral. Regulatory updates in 2026 clarified stablecoin and on-chain yield rules, which affected product design and market participation.

Tax treatment varies by token structure. Rebasing funds create recurring income events as yield is distributed, while yield-bearing tokens generally produce price appreciation taxed as a capital event when sold. Investor choice among products reflects access requirements, fee structures, tax considerations, chain support and composability with DeFi protocols.