{"id":988,"date":"2026-05-02T03:03:28","date_gmt":"2026-05-02T03:03:28","guid":{"rendered":"https:\/\/beyondotc.com\/blog\/tokenized-us-treasuries-blackrock-buidl-vs-ondo-vs-franklin-compared\/"},"modified":"2026-05-02T03:03:28","modified_gmt":"2026-05-02T03:03:28","slug":"tokenized-us-treasuries-blackrock-buidl-vs-ondo-vs-franklin-compared","status":"publish","type":"post","link":"https:\/\/beyondotc.com\/blog\/tokenized-us-treasuries-blackrock-buidl-vs-ondo-vs-franklin-compared\/","title":{"rendered":"Tokenized US Treasuries: BlackRock BUIDL vs Ondo vs Franklin Compared"},"content":{"rendered":"\n<p>Tokenized US Treasuries are reshaping how investors access government securities. They combine blockchain efficiency with U.S. government-backed security, offering yields of 4.5%-5% without converting digital assets to fiat. Market leaders <a href=\"https:\/\/www.blackrock.com\/corporate\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">BlackRock<\/a>, <a href=\"https:\/\/ondo.finance\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Ondo Finance<\/a>, and <a href=\"https:\/\/www.franklintempleton.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Franklin Templeton<\/a> cater to different audiences with distinct strategies:<\/p>\n<ul>\n<li><strong>BlackRock BUIDL<\/strong>: Targets large institutions with a $5M minimum investment and instant USDC liquidity.<\/li>\n<li><strong>Ondo Finance<\/strong>: Balances DeFi and institutional needs, with products starting at $500 for retail and $100K for accredited investors.<\/li>\n<li><strong>Franklin Templeton (BENJI)<\/strong>: Accessible to all with a $20 minimum, ideal for retail and institutional investors alike.<\/li>\n<\/ul>\n<h3 id=\"quick-comparison\" tabindex=\"-1\">Quick Comparison<\/h3>\n<table style=\"width:100%;\">\n<thead>\n<tr>\n<th>Feature<\/th>\n<th>BlackRock BUIDL<\/th>\n<th>Ondo Finance (USDY\/OUSG)<\/th>\n<th>Franklin Templeton (BENJI)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Minimum Investment<\/strong><\/td>\n<td>$5,000,000<\/td>\n<td>$500 (USDY) \/ $100,000 (OUSG)<\/td>\n<td>$20<\/td>\n<\/tr>\n<tr>\n<td><strong>Yield<\/strong><\/td>\n<td>~4.8% APY<\/td>\n<td>4.6%-4.85% APY<\/td>\n<td>4.95% APY<\/td>\n<\/tr>\n<tr>\n<td><strong>Blockchain Support<\/strong><\/td>\n<td><a href=\"https:\/\/ethereum.org\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Ethereum<\/a>, BNB Chain<\/td>\n<td>Multi-chain (Ethereum, <a href=\"https:\/\/solana.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Solana<\/a>, etc.)<\/td>\n<td>9 networks (<a href=\"https:\/\/stellar.org\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Stellar<\/a>, <a href=\"https:\/\/polygon.technology\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Polygon<\/a>, etc.)<\/td>\n<\/tr>\n<tr>\n<td><strong>Target Investors<\/strong><\/td>\n<td>Large institutions<\/td>\n<td>DeFi users &amp; accredited investors<\/td>\n<td>Retail &amp; institutional<\/td>\n<\/tr>\n<tr>\n<td><strong>Liquidity<\/strong><\/td>\n<td>T+0 via USDC<\/td>\n<td>T+0 instant redemption<\/td>\n<td>T+1 settlement<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Each platform offers unique benefits based on investor needs, from institutional-grade security to broad accessibility. The tokenized Treasuries market, now valued at $15B, is set to grow further, with these players leading the way.<\/p>\n<figure>         <img decoding=\"async\" src=\"https:\/\/assets.seobotai.com\/undefined\/69f55f7b74a8318574a4b6cd-1777690292803.jpg\" alt=\"BlackRock BUIDL vs Ondo Finance vs Franklin Templeton BENJI Comparison\" style=\"width:100%;\"><figcaption style=\"font-size: 0.85em; text-align: center; margin: 8px; padding: 0;\">\n<p style=\"margin: 0; padding: 4px;\">BlackRock BUIDL vs Ondo Finance vs Franklin Templeton BENJI Comparison<\/p>\n<\/figcaption><\/figure>\n<h2 id=\"where-to-buy-tokenized-us-treasuries-and-rwas-in-2026\" tabindex=\"-1\" class=\"sb h2-sbb-cls\">Where to Buy Tokenized US Treasuries &amp; RWAs in 2026<\/h2>\n<p> <iframe class=\"sb-iframe\" src=\"https:\/\/www.youtube.com\/embed\/J48btj7ewUg\" frameborder=\"0\" loading=\"lazy\" allowfullscreen style=\"width: 100%; height: auto; aspect-ratio: 16\/9;\"><\/iframe><\/p>\n<h6 id=\"sbb-itb-7e716c2\" class=\"sb-banner\" style=\"display: none;color:transparent;\">sbb-itb-7e716c2<\/h6>\n<h2 id=\"blackrock-buidl-overview\" tabindex=\"-1\" class=\"sb h2-sbb-cls\"><a href=\"https:\/\/www.blackrock.com\/corporate\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">BlackRock<\/a> BUIDL Overview<\/h2>\n<p>BlackRock&#8217;s BUIDL operates as a Reg D private placement fund and an SEC-exempt money market fund. It invests entirely in cash, US Treasury bills, and repurchase agreements, offering on-chain exposure to government-backed securities through blockchain technology. As of May 2026, BUIDL has amassed approximately $2.4 billion in total value locked, solidifying its position as the leading player in the tokenized Treasury market.<\/p>\n<p>Ethereum serves as BUIDL&#8217;s primary tokenization layer, while <a href=\"https:\/\/securitize.io\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Securitize<\/a> acts as the transfer agent, handling KYC\/AML compliance and managing the digital cap table. The assets are securely held by <a href=\"https:\/\/www.bny.com\/corporate\/global\/en\/solutions\/platforms\/securities-services.html\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Bank of New York Mellon<\/a> under a regulated risk-management framework. As noted by GlobalTokenize:<\/p>\n<blockquote>\n<p>BUIDL has become the de facto on\u2011chain T\u2011bill standard for DeFi infrastructure.<\/p>\n<\/blockquote>\n<p>BUIDL has extended its reach to seven additional blockchains, including Solana, BNB Chain, <a href=\"https:\/\/www.avax.network\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Avalanche<\/a>, Arbitrum, Optimism, and Aptos. This multi-chain expansion enhances its accessibility and broadens its use as collateral across the digital asset landscape, reinforcing its role in decentralized finance.<\/p>\n<h3 id=\"investment-features-and-mechanics\" tabindex=\"-1\">Investment Features and Mechanics<\/h3>\n<p>BUIDL is designed for Qualified Purchasers, requiring a $5,000,000 minimum investment. It maintains a $1.00 NAV per token and offers yields of approximately 3.5\u20134.0% APY as of May 2026. Unlike tokens that accumulate value, BUIDL uses a rebasing mechanism, distributing daily dividends directly to investors&#8217; wallets.<\/p>\n<p>Management fees range from 0.20% to 0.50%, which is competitive for an institutional-grade product. BlackRock&#8217;s established reputation further strengthens the fund&#8217;s appeal. In February 2026, BUIDL&#8217;s daily average trading volume reached around $2.3 million, signaling consistent institutional activity.<\/p>\n<p>To ensure regulatory compliance, on-chain transfers are limited to whitelisted wallets verified by Securitize. This setup allows only qualified investors to hold and transfer BUIDL tokens while enabling 24\/7 peer-to-peer transactions within the approved network.<\/p>\n<h3 id=\"liquidity-and-redemption-process\" tabindex=\"-1\">Liquidity and Redemption Process<\/h3>\n<p>One of BUIDL&#8217;s standout features is its T+0 redemption capability. Through a partnership with <a href=\"https:\/\/www.circle.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Circle<\/a>, the fund provides a USDC liquidity facility exceeding $100 million, enabling instant redemptions into USDC without waiting for Treasury bill settlements. Traditional Treasury funds often require T+1 or T+2 settlement periods and are restricted to U.S. market hours.<\/p>\n<p>As GlobalTokenize highlights:<\/p>\n<blockquote>\n<p>Circle provides a $100M+ USDC liquidity facility enabling T+0 redemptions in stablecoins &#8211; without waiting for the underlying T-bills to settle.<\/p>\n<\/blockquote>\n<p>This instant liquidity reshapes how institutional investors manage on-chain capital. Instead of converting digital assets back to fiat and enduring lengthy settlement times, investors can seamlessly transition between yield-bearing Treasuries and stablecoins. Additionally, the custody arrangement with BNY Mellon offers institutional-grade security, addressing counterparty risk concerns for traditional finance firms exploring blockchain-based solutions.<\/p>\n<h2 id=\"ondo-finance-overview\" tabindex=\"-1\" class=\"sb h2-sbb-cls\"><a href=\"https:\/\/ondo.finance\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Ondo Finance<\/a> Overview<\/h2>\n<p><img decoding=\"async\" src=\"https:\/\/assets.seobotai.com\/beyondotc.com\/69f55f7b74a8318574a4b6cd\/be15d9fb3e1323a7c65679e100066201.jpg\" alt=\"Ondo Finance\" style=\"width:100%;\"><\/p>\n<p>Ondo Finance, much like BlackRock&#8217;s institutional-grade BUIDL, designs its offerings to meet specific investor demands, bridging the gap between decentralized finance (DeFi) and traditional institutional markets. With two key products &#8211; USDY for DeFi users and OUSG for U.S. institutional investors &#8211; Ondo Finance has claimed 17% of the tokenized U.S. Treasury market by late 2025.<\/p>\n<p>The company emphasizes regulatory compliance and efficient blockchain distribution. USDY is structured as a Reg S security for non-U.S. investors, while OUSG caters to U.S. accredited investors and Qualified Purchasers under Reg D. Both products are safeguarded through bankruptcy\u2010remote structures, using segregated Special Purpose Vehicles (SPVs) to keep assets legally distinct from Ondo Finance&#8217;s corporate balance sheet.<\/p>\n<h3 id=\"usdy-defi-focused-product\" tabindex=\"-1\">USDY: DeFi-Focused Product<\/h3>\n<p>USDY manages between $1.32 and $1.88 billion in total value locked (TVL) as of May 2026, making it the most widely distributed tokenized Treasury product across multiple blockchains. It operates on Ethereum, Solana, Mantle, Sui, and Aptos, with Solana accounting for about 35% of the total supply.<\/p>\n<p>The product delivers yields between 3.4% and 3.55% APY, supported by a portfolio that, as of April 2026, is composed of approximately 92% U.S. Treasuries and 8% bank demand deposits. Investors pay a 0.25% annual management fee, with no minimum for secondary-market purchases but a $100,000 minimum for direct subscriptions. New investors face an initial 40-day lock-up period before tokens can be traded or redeemed.<\/p>\n<p>USDY functions as an accumulating token, with its redemption value increasing daily to reflect accrued interest. For DeFi protocols that prioritize price stability, Ondo offers rUSDY &#8211; a rebasing version that maintains a fixed $1.00 price while distributing yield through token quantity adjustments. This adaptability has made USDY a popular collateral option on platforms like <a href=\"https:\/\/www.drift.trade\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Drift Protocol<\/a> on Solana and <a href=\"https:\/\/morpho.org\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Morpho<\/a> on Ethereum.<\/p>\n<blockquote>\n<p>&quot;USDY is the most chain-distributed of the major tokenized-Treasury wrappers, which makes it the de facto standard for cross-chain treasury allocations.&quot;<\/p>\n<p>\u2013 Eco Support <\/p>\n<\/blockquote>\n<p>While USDY focuses on DeFi users, OUSG takes a tailored approach for U.S. institutional investors.<\/p>\n<h3 id=\"ousg-institutional-product\" tabindex=\"-1\">OUSG: Institutional Product<\/h3>\n<p>OUSG manages $692 million in TVL and is designed for U.S. institutional investors, DAOs, and high-net-worth individuals. The product allows instant minting and redemption for investments starting at $5,000, with higher thresholds of $100,000 for non-instant transactions. It is available on Ethereum, Polygon, and Solana.<\/p>\n<p>Unlike USDY, which directly holds U.S. Treasuries, OUSG relies on BlackRock&#8217;s BUIDL and other Treasury ETFs as reserve assets. This setup leverages BlackRock&#8217;s reputation and BNY Mellon&#8217;s custody services, positioning OUSG as a distribution layer for institutional-grade products. The fund charges a 0.15% management fee, though this fee is waived until July 1, 2026.<\/p>\n<p>OUSG generates returns through Net Asset Value (NAV) growth, rather than using a rebasing or accumulation model. As Ondo Finance explains:<\/p>\n<blockquote>\n<p>&quot;OUSG provides liquid exposure primarily to short-term U.S. Treasuries&#8230; with 24\/7 tokenized subscriptions and redemptions.&quot;<\/p>\n<\/blockquote>\n<p>The product also supports instant T+0 redemptions through USDC and RLUSD liquidity pools, enabling institutional investors to move seamlessly between cash and yield-bearing assets without waiting for traditional settlement times. Additionally, OUSG serves as collateral on <a href=\"https:\/\/fluxfinance.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Flux Finance<\/a>, meeting the needs of institutions that require programmable compliance and continuous settlement options.<\/p>\n<h2 id=\"franklin-templeton-overview\" tabindex=\"-1\" class=\"sb h2-sbb-cls\"><a href=\"https:\/\/www.franklintempleton.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Franklin Templeton<\/a> Overview<\/h2>\n<p><img decoding=\"async\" src=\"https:\/\/assets.seobotai.com\/beyondotc.com\/69f55f7b74a8318574a4b6cd\/b0dd3892aade160d7b0f0cd35e72c3f5.jpg\" alt=\"Franklin Templeton\" style=\"width:100%;\"><\/p>\n<p>Franklin Templeton made its entry into the tokenized Treasury market in early 2021 with the launch of its <strong>Franklin OnChain U.S. Government Money Fund (FOBXX)<\/strong> on the Stellar blockchain. This fund is tracked via BENJI tokens, where each token represents one share. By May 2026, the fund had reached an impressive $1.02 billion in total value locked.<\/p>\n<p>What distinguishes Franklin Templeton is its ability to cater to both retail and institutional investors through a single product. Unlike BlackRock&#8217;s BUIDL, which requires a hefty $5 million minimum investment, or Ondo&#8217;s OUSG, which sets the bar at $100,000, BENJI offers accessibility with just a $20 minimum investment. This approach opens the door to a wider range of investors. Retail users can easily engage with the fund through a mobile app, while institutional investors benefit from a dedicated web platform.<\/p>\n<p>The fund operates as an <strong>SEC-registered money market fund<\/strong> under the Investment Company Act of 1940, leveraging public blockchain infrastructure as its primary record-keeping system. Franklin Templeton developed the proprietary &quot;Benji&quot; platform, which acts as a blockchain-integrated transfer agent and management system. This system ensures compliance at the protocol level while enabling real-time transfers between approved wallets. These features highlight Franklin Templeton&#8217;s effort to combine traditional financial reliability with the flexibility of blockchain technology.<\/p>\n<h3 id=\"benji-features-and-accessibility\" tabindex=\"-1\">BENJI Features and Accessibility<\/h3>\n<p>BENJI delivers daily yields directly to shareholders&#8217; wallets, avoiding the need to adjust the token price. As of early 2026, the fund maintains a stable net asset value (NAV) of $1.00 per token and offers a 7-day yield of 3.03% and a 30-day yield of 3.40%. The fund charges a 0.15% management fee, with no additional subscription or redemption fees.<\/p>\n<p>In June 2025, the fund introduced a <strong>pro-rata yield mechanism<\/strong>, allowing shareholders to earn yield for the exact time they hold tokens &#8211; even during mid-day transfers. By August 2025, BENJI had facilitated over $87 million in peer-to-peer transfers. This system has proven particularly useful for institutional investors, enabling them to manage collateral efficiently while continuing to accrue yield. Beyond yield distribution, Franklin Templeton has focused on integrating BENJI across networks to improve liquidity and broaden investor access.<\/p>\n<h3 id=\"blockchain-integration-and-market-adoption\" tabindex=\"-1\">Blockchain Integration and Market Adoption<\/h3>\n<p>BENJI operates across nine blockchain networks, with Stellar hosting approximately 63% of the token supply. This multi-chain strategy enhances liquidity and allows investors to choose the blockchain ecosystem that suits them best.<\/p>\n<p>The fund&#8217;s blockchain-native design supports <strong>24\/7 settlements<\/strong>, eliminating delays often associated with traditional banking. Through USDC integration, investors can fund accounts and receive redemption proceeds in digital currency, bypassing the inefficiencies of legacy financial systems.<\/p>\n<p>In late 2024, Franklin Templeton expanded the Benji platform to the <a href=\"https:\/\/www.canton.network\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Canton Network<\/a>, which offers increased privacy and regulatory compliance for institutional users. Roger Bayston, Franklin Templeton&#8217;s Head of Digital Assets, explained:<\/p>\n<blockquote>\n<p>&quot;To deliver a private blockchain option alongside the interoperability clients expect.&quot; <\/p>\n<\/blockquote>\n<p>This move positions BENJI as a valuable collateral option within institutional digital asset markets, particularly through Canton&#8217;s Global Collateral Network. By embracing blockchain technology and prioritizing accessibility, Franklin Templeton has established BENJI as a secure and cost-effective way for investors to gain exposure to U.S. Treasuries.<\/p>\n<h2 id=\"comparison-of-blackrock-buidl-ondo-and-franklin\" tabindex=\"-1\" class=\"sb h2-sbb-cls\">Comparison of BlackRock BUIDL, Ondo, and Franklin<\/h2>\n<p>Let\u2019s dive into how these three platforms &#8211; BlackRock BUIDL, Ondo Finance, and Franklin&#8217;s BENJI &#8211; stack up against each other based on their key features.<\/p>\n<p>BlackRock BUIDL focuses on large institutions, requiring a steep minimum investment of <strong>$5,000,000<\/strong>. Ondo Finance, on the other hand, caters to both DeFi users, with investments starting at <strong>$500<\/strong>, and U.S. institutions, which need at least <strong>$100,000<\/strong>. Franklin&#8217;s BENJI is the most accessible, with a minimum investment of just <strong>$20<\/strong>.<\/p>\n<p>When it comes to blockchain networks, BlackRock operates primarily on <strong>Ethereum<\/strong> and <strong>BNB Chain<\/strong>, with strict whitelisting protocols. Ondo takes a multi-chain approach, supporting <strong>Ethereum<\/strong>, <strong>Polygon<\/strong>, and <strong>Solana<\/strong>, while Franklin&#8217;s BENJI spans an impressive <strong>nine networks<\/strong>, with <strong>Stellar<\/strong> hosting the majority of its tokens.<\/p>\n<h3 id=\"feature-comparison-table\" tabindex=\"-1\">Feature Comparison Table<\/h3>\n<table style=\"width:100%;\">\n<thead>\n<tr>\n<th>Feature<\/th>\n<th>BlackRock BUIDL<\/th>\n<th>Ondo (USDY\/OUSG)<\/th>\n<th>Franklin BENJI<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Market Cap\/TVL<\/strong><\/td>\n<td>$2.28B (April 2026)<\/td>\n<td>&gt;$1B (March 2025)<\/td>\n<td>$360M+ (Early 2024)<\/td>\n<\/tr>\n<tr>\n<td><strong>Yield<\/strong><\/td>\n<td>~4.8% APY<\/td>\n<td>4.6% (OUSG) \u2013 4.85% (USDY)<\/td>\n<td>4.95% APY<\/td>\n<\/tr>\n<tr>\n<td><strong>Minimum Investment<\/strong><\/td>\n<td>$5,000,000<\/td>\n<td>$500 (USDY) \/ $100,000 (OUSG)<\/td>\n<td>$20<\/td>\n<\/tr>\n<tr>\n<td><strong>Custody\/Blockchain<\/strong><\/td>\n<td>BNY Mellon \/ Ethereum<\/td>\n<td><a href=\"https:\/\/www.fireblocks.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Fireblocks<\/a>, <a href=\"https:\/\/www.bitgo.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">BitGo<\/a>, Anchorage \/ Multi-chain<\/td>\n<td>Institutional custody \/ 9 Networks<\/td>\n<\/tr>\n<tr>\n<td><strong>Liquidity Features<\/strong><\/td>\n<td>T+0 via USDC facility<\/td>\n<td>T+0 instant redemption<\/td>\n<td>T+1 settlement<\/td>\n<\/tr>\n<tr>\n<td><strong>Target Investors<\/strong><\/td>\n<td>Large Institutions<\/td>\n<td>Retail (USDY) &amp; Accredited (OUSG)<\/td>\n<td>Retail &amp; Institutional<\/td>\n<\/tr>\n<tr>\n<td><strong>DeFi Composability<\/strong><\/td>\n<td>Institutional-only (UniswapX)<\/td>\n<td>Extensive (<a href=\"https:\/\/aave.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Aave<\/a>, Morpho, DEXs)<\/td>\n<td>Limited<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>This table highlights the distinct approaches each platform takes. For custody solutions, BlackRock partners with <strong>BNY Mellon<\/strong>, emphasizing its alignment with traditional finance standards. Ondo opts for crypto-native custodians like <strong>Fireblocks<\/strong>, <strong>BitGo<\/strong>, and <strong><a href=\"https:\/\/www.anchorage.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" style=\"display: inline;\">Anchorage Digital<\/a><\/strong>, showcasing its DeFi focus. Franklin, while maintaining institutional-grade custody, leans heavily on blockchain-native settlement across its diverse network setup.<\/p>\n<p>Each platform clearly targets a different audience, from BlackRock&#8217;s institutional exclusivity to Franklin&#8217;s accessibility for individual investors. Their liquidity and composability features further underline their unique investment philosophies.<\/p>\n<h2 id=\"differentiators-and-investor-use-cases\" tabindex=\"-1\" class=\"sb h2-sbb-cls\">Differentiators and Investor Use Cases<\/h2>\n<p>Each platform tailors its offerings to specific investor groups, leveraging distinct features to meet unique needs.<\/p>\n<h3 id=\"blackrock-buidl-institutional-approach\" tabindex=\"-1\">BlackRock BUIDL: Institutional Approach<\/h3>\n<p>BlackRock BUIDL is designed exclusively for large institutions, requiring a <strong>minimum investment of $5,000,000<\/strong>. Its target audience includes pension funds, large family offices, and institutions managing billions of dollars in assets. By partnering with BNY Mellon for custody services and leveraging BlackRock&#8217;s massive $10 trillion+ assets under management (AUM), BUIDL ensures a high level of counterparty safety and regulatory compliance for institutional clients.<\/p>\n<blockquote>\n<p>&quot;For the small segment of investors with $5M+ seeking maximum institutional credibility and counterparty safety, BlackRock BUIDL offers an unmatched option.&quot; \u2013 Fensory <\/p>\n<\/blockquote>\n<p>Institutions primarily use BUIDL for cash management and collateralization. It allows them to park excess cash while earning approximately <strong>4.8% APY<\/strong> and offers instant redemption via USDC through its collaboration with Circle. The fund&#8217;s rapid adoption among institutions has earned it recognition as &quot;the de facto on-chain T-bill standard for DeFi infrastructure&quot;, according to GlobalTokenize. However, the strict entry requirement limits its investor base to fewer than 1% of potential participants. This exclusivity sets it apart from platforms with broader accessibility.<\/p>\n<h3 id=\"ondo-finance-accessibility-and-defi-integration\" tabindex=\"-1\">Ondo Finance: Accessibility and DeFi Integration<\/h3>\n<p>Ondo Finance bridges the gap between traditional finance and crypto-native users with a dual-market strategy. Its USDY product requires a <strong>$500 minimum investment<\/strong>, making it accessible to retail investors, while OUSG targets accredited investors with a <strong>$100,000 minimum<\/strong>. This positions Ondo between BlackRock&#8217;s highly exclusive model and Franklin Templeton&#8217;s mass-market focus.<\/p>\n<p>What makes Ondo stand out is its integration with decentralized finance (DeFi). The platform connects with protocols like Aave, Morpho, and Flux, enabling users to explore collateral-based borrowing and yield-stacking strategies. By early 2026, Ondo&#8217;s total TVL (Total Value Locked) surpassed <strong>$1 billion across all products<\/strong>. As CEO Nathan Allman explained:<\/p>\n<blockquote>\n<p>&quot;The operational efficiency gains are measurable &#8211; clients can move between cash and yield-bearing assets instantly rather than waiting for settlement.&quot; <\/p>\n<\/blockquote>\n<p>Ondo&#8217;s multi-chain compatibility allows retail users to deploy Treasury-backed tokens across Ethereum, Polygon, and Solana, offering <strong>4.6\u20134.85% APY<\/strong> with T+0 liquidity. Although this approach carries slightly higher counterparty risk than BlackRock, Ondo reduces exposure by backing its OUSG product largely with BUIDL assets.<\/p>\n<h3 id=\"franklin-templeton-broad-market-access\" tabindex=\"-1\">Franklin Templeton: Broad Market Access<\/h3>\n<p>Franklin Templeton takes a different approach by focusing on accessibility for the broader market. Its BENJI product, an SEC-registered mutual fund, delivers Treasury exposure through a <strong>mobile app<\/strong> and operates on blockchain networks like Stellar, Polygon, and Avalanche.<\/p>\n<p>With a <strong>$20 minimum investment<\/strong>, BENJI opens the door for retail investors, offering a straightforward way to access Treasury-backed assets. Its SEC registration provides a level of regulatory clarity that private placement structures often lack. The mobile app&#8217;s user-friendly interface appeals to individuals who prefer familiar fintech tools over navigating complex DeFi protocols, even though BENJI&#8217;s DeFi integration is more limited compared to Ondo. This strategy aligns with the growing demand for digital assets, making tokenized Treasuries accessible to everyday investors.<\/p>\n<h2 id=\"market-position-and-future-outlook\" tabindex=\"-1\" class=\"sb h2-sbb-cls\">Market Position and Future Outlook<\/h2>\n<h3 id=\"growth-and-adoption-trends\" tabindex=\"-1\">Growth and Adoption Trends<\/h3>\n<p>The tokenized US Treasuries market has seen explosive growth, going from virtually non-existent in 2022 to managing over $15 billion in assets by March 2026. This represents a staggering 50x increase since early 2024  and a year-over-year growth rate of 400% as of early 2026. Analysts predict the market could reach between $50 billion and $75 billion in assets by the end of 2026, signaling a shift in how institutions approach cash and collateral management.<\/p>\n<p>BlackRock BUIDL leads the market with approximately $5.2 billion in assets, commanding a 35% share. Ondo Finance&#8217;s USDY follows with $3.1 billion (21% share), while Franklin Templeton&#8217;s OnChain U.S. Government Money Fund holds 12% of the market. Secondary trading volumes have also surged, surpassing $150 million daily. Bid-ask spreads, which were 15\u201325 basis points in early 2025, have narrowed to just 2\u20134 basis points by March 2026. This tightening reflects improved liquidity, operational efficiency, and growing institutional trust.<\/p>\n<p>Beyond market activity, tokenized Treasury operations are proving cost-efficient. They could save institutions $50\u2013100 million annually while offering a yield premium of 15\u201325 basis points over traditional money market funds. Meanwhile, legacy systems are under pressure, with transfer agents and custodian banks experiencing a $2\u20133 billion annual reduction in fees as tokenized alternatives reshape the landscape. These trends highlight both the disruptive potential and the opportunities for innovation in this evolving sector.<\/p>\n<h3 id=\"future-developments-and-challenges\" tabindex=\"-1\">Future Developments and Challenges<\/h3>\n<p>The market is expanding its offerings to include longer-duration tokens, inflation-protected securities, and tokenized ETFs for equity and gold. For instance, Franklin Templeton&#8217;s collaboration with Ondo Finance to tokenize equity and gold ETFs illustrates the push toward broader product diversification. Additionally, deploying across multiple blockchains like Ethereum, Polygon, and Solana is helping to lower transaction costs and enhance accessibility.<\/p>\n<p>On the regulatory front, frameworks like the GENIUS Act and EU MiCA are bringing more structure to stablecoins and tokenized assets. However, challenges remain. Operational hurdles include &quot;blockchain taxes&quot; (gas fees), fragmentation across multiple chains, and the need for enterprise-grade governance tools with features like multi-signature controls and audit trails.<\/p>\n<p>The October 2025 stress test &#8211; a $19 billion single-day liquidation &#8211; highlighted the market&#8217;s resilience but also underscored the need for stronger infrastructure. Security issues, such as the &quot;oracle problem&quot;, where discrepancies could arise between off-chain Treasury values and on-chain prices, are being addressed with tools like Chainlink&#8217;s Proof of Reserve verification.<\/p>\n<p>As the market progresses, balancing innovation with regulatory compliance will be critical. Platforms that successfully integrate these elements while maintaining investor accessibility are poised to capture significant growth in the years ahead.<\/p>\n<h2 id=\"conclusion\" tabindex=\"-1\" class=\"sb h2-sbb-cls\">Conclusion<\/h2>\n<p>The tokenized US Treasuries market has grown into a <strong>$15 billion institutional asset class<\/strong>, offering three distinct approaches tailored to different needs. BlackRock BUIDL stands out with its $5,000,000 minimum investment and BNY Mellon custody, catering to large-scale allocators who value regulatory safeguards and counterparty security. Ondo Finance connects traditional finance with DeFi, providing <strong>multi-chain accessibility<\/strong> and investment options from $0 to $100,000, making it accessible to both retail investors and protocols seeking government-backed yields. Franklin Templeton focuses on <strong>expanding market access<\/strong>, removing traditional barriers to Treasury investments. Together, these strategies illustrate the diverse forces shaping this evolving market.<\/p>\n<p>Each platform contributes to building infrastructure that serves unique market segments. The sector has progressed from simple yield products to becoming essential <strong>financial infrastructure<\/strong>, with tokenized Treasuries increasingly used as collateral across major lending protocols and centralized exchanges.<\/p>\n<p>With features like T+0 settlement, 24\/7 redemption, and cost savings of 35\u201350 basis points, the market demonstrates clear efficiency gains. The market shares of BlackRock (35%) and Ondo (21%) further reflect growing institutional trust and the push for broader accessibility.<\/p>\n<h2 id=\"faqs\" tabindex=\"-1\" class=\"sb h2-sbb-cls\">FAQs<\/h2>\n<h3 id=\"how-do-tokenized-treasuries-actually-pay-yield-on-chain\" tabindex=\"-1\" data-faq-q>How do tokenized Treasuries actually pay yield on-chain?<\/h3>\n<p>Tokenized Treasuries generate yield on-chain by either passively or actively managing their underlying assets. This yield often comes from using decentralized finance (DeFi) protocols, including lending platforms, liquidity pools, or staking systems. Investors can benefit from interest payments, liquidity mining rewards, or other protocol incentives. Since everything is handled directly on-chain, returns are distributed in real time, offering new ways to earn income within the digital asset ecosystem.<\/p>\n<h3 id=\"whats-the-real-difference-between-t0-and-t1-liquidity-for-these-funds\" tabindex=\"-1\" data-faq-q>What\u2019s the real difference between T+0 and T+1 liquidity for these funds?<\/h3>\n<p>The key distinction lies in how quickly funds become available. <strong>T+0 liquidity<\/strong> means investors can access their money immediately or on the same day, allowing for near-instant trading and greater flexibility. On the other hand, <strong>T+1 liquidity<\/strong> involves a one-day settlement period, so funds or proceeds are accessible the following day. This difference affects how quickly investors can respond to market movements, with T+0 providing faster access and more immediate opportunities.<\/p>\n<h3 id=\"what-risks-should-i-consider-beyond-us-treasury-credit-risk\" tabindex=\"-1\" data-faq-q>What risks should I consider beyond U.S. Treasury credit risk?<\/h3>\n<p>Investors considering tokenized Treasuries need to look beyond U.S. Treasury credit risk and carefully assess other potential challenges, such as:<\/p>\n<ul>\n<li><strong>Technological risks<\/strong>: Issues like smart contract bugs, platform vulnerabilities, or cybersecurity breaches could pose significant threats.<\/li>\n<li><strong>Regulatory risks<\/strong>: Changes in laws and regulations might influence compliance requirements or the enforceability of tokenized assets.<\/li>\n<li><strong>Liquidity risks<\/strong>: The market for tokenized assets may lack sufficient liquidity, especially during periods of financial stress.<\/li>\n<li><strong>Counterparty risks<\/strong>: Failures by issuers or custodians could jeopardize the token&#8217;s value or hinder redemption.<\/li>\n<\/ul>\n<p>Taking the time to understand these risks is essential for making informed investment decisions.<\/p>\n<h2>Related Blog Posts<\/h2>\n<ul>\n<li><a href=\"\/blog\/how-tokenized-assets-impact-institutional-portfolios\/\" style=\"display: inline;\">How Tokenized Assets Impact Institutional Portfolios<\/a><\/li>\n<li><a href=\"\/blog\/stablecoin-yield-strategies-treasury-allocations-above-10m\/\" style=\"display: inline;\">Stablecoin Yield Strategies for Treasury Allocations Above $10M<\/a><\/li>\n<li><a href=\"\/blog\/real-world-asset-tokenization-yield-sources-institutions\/\" style=\"display: inline;\">Real-World Asset Tokenization: Yield Sources for Institutions<\/a><\/li>\n<li><a href=\"\/blog\/tokenized-treasury-bills-vs-on-chain-yield-allocation-models\/\" style=\"display: inline;\">Tokenized Treasury Bills vs On-Chain Yield: Allocation Models<\/a><\/li>\n<\/ul>\n<p><script async type=\"text\/javascript\" src=\"https:\/\/app.seobotai.com\/banner\/banner.js?id=69f55f7b74a8318574a4b6cd\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Compare tokenized U.S. Treasuries across yield, liquidity, fees and accessibility for institutional and retail 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