Tokenized Treasuries Top $7B as BUIDL Hits $3B

Tokenized Treasury and money-market funds exceeded $7 billion in May 2026 as BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) surpassed $3 billion, Franklin Templeton’s BENJI expanded to eight blockchain networks, and Ondo Finance’s USDY supply topped $1 billion.

BlackRock’s BUIDL launched on Ethereum in March 2024 with $100 million in seed capital and holds short-term U.S. Treasuries and cash. The fund distributes yield daily and settles on-chain, offering instant settlement rather than traditional T+1 or T+2 windows. In May 2026 BlackRock filed for two additional tokenized money market fund structures aimed at stablecoin issuers.

Franklin Templeton’s BENJI token represents shares in the Franklin OnChain US Government Money Fund. In May 2026 BENJI expanded to eight blockchains, including Ethereum, Polygon, Stellar, Solana, Avalanche, Aptos and Arbitrum. The fund has a reported yield near 4.5% to 4.8% APY and is available across multiple chains to reduce transfer and access frictions for retail holders.

Ondo Finance’s USDY crossed $1 billion in supply in May 2026. USDY is structured for decentralized finance integration: it transfers like a stablecoin, trades on decentralized exchanges and accrues Treasury yield on-chain. USDY’s yield has tracked similarly to tokenized fund yields, at roughly 4.8% APY.

The broader category of tokenized Treasury and money market funds grew from about $2.3 billion at the start of 2025 to more than $7 billion by May 2026. That growth was driven by BUIDL, BENJI, USDY and products from other issuers including WisdomTree and Superstate. The stablecoin market reached a valuation of $322 billion in May 2026 and is projected to approach about $420 billion by year-end.

Products differ by target users and transfer rules. BUIDL is aimed at institutional clients and stablecoin issuers and requires KYC and investment minimums. BENJI emphasizes multi-chain retail access. USDY is designed for DeFi composability and trading on decentralized platforms. Tokenized funds are regulated investment products with transfer restrictions tied to securities rules, while yield-bearing stablecoins are structured for easier on-chain transfers.

Consumer-facing applications have begun to use institutional tokenized Treasury infrastructure. OpenTrade provides settlement and yield services that power consumer products such as Littio’s Pots, which route Treasury-backed yield through on-chain rails for users in some markets and have offered higher advertised returns in those products.

Regulatory frameworks are under development in major jurisdictions. U.S. legislative proposals and central bank guidance in other markets address how tokenized fund products and stablecoins will be classified and distributed. Concentration of stablecoin reserves in a single fund is a regulatory question identified by policymakers as tokenized Treasury assets grow in scale.