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Tokenization6 min read2025-06-23

Blockchain News: Tokenized Fund Market — $5B and Growing

The tokenized fund market grew from $500M to $5B+ between mid-2023 and mid-2025. Tokenized money market funds, T-bills, and private credit are the fastest-growing categories. Here is the market structure.

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Key Insight

The tokenized fund market has grown from $500M to $5B+ between mid-2023 and mid-2025. Market leaders: BlackRock BUIDL ($1.5B+), Franklin Templeton BENJI ($500M+), Ondo Finance USDY ($400M+), Superstate ($200M+), Maple Finance ($300M+). Growth drivers: DeFi demand for yield on idle stablecoin capital ($150B+ addressable market) and institutional infrastructure maturity. The $28T US Treasury market is 0.018% penetrated — enormous growth runway remains.

Market Leaders

BlackRock BUIDL ($1.5B+): The largest tokenized fund. Institutional-only ($5M minimum). Distributed daily dividends in USDC. Ethereum-based. The most visible signal of institutional DeFi convergence.

Franklin Templeton FOBXX ($500M+): The first tokenized money market fund on public blockchain (launched 2021). Ethereum + Polygon + Stellar. Unique feature: fund shares are ERC-20 tokens that retail investors can hold in any compatible wallet.

Ondo Finance USDY ($400M+): Tokenized note backed by US Treasuries. Available to non-US accredited investors. Yield: 5%+. Composable with DeFi — used as collateral in some lending protocols.

Superstate ($200M+): Short Duration US Government Securities Fund tokenized on Ethereum. Founded by ex-Compound team members. Institutional focus.

Maple Finance ($300M+): On-chain corporate lending. Pool delegates (professional credit underwriters) manage lending pools. Yields 8–15% reflecting credit risk.

What Drives Growth

DeFi demand for yield on idle capital: $150B+ in stablecoins sits in DeFi with minimal yield (stablecoins earn 0% by themselves). Tokenized T-bills integrated into DeFi protocols allow this capital to earn 4–5% risk-free. The addressable market: every dollar of idle stablecoin in DeFi.

Institutional blockchain infrastructure maturity: BlackRock running $1.5B on Ethereum signals that institutional compliance, custody, and legal structures are now established. Other asset managers following.

Strategic Insight

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