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Tokenization6 min read2025-06-23

Tokenized US Treasuries Cross $5B — BlackRock, Franklin Templeton, and Ondo Lead

The tokenized US Treasury market has become the fastest-growing segment of on-chain assets. Here is who is leading, what it means for institutional adoption, and what builders can learn from the infrastructure.

ClickMasters Team
Industry Update
Expert Analysis
Strategic Insight

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Key Insight

Tokenized US Treasuries have grown to $5B+ AUM. Market leaders: BlackRock BUIDL ($1.5B+, institutional, $5M min, daily USDC dividends), Franklin Templeton BENJI ($400M+, retail accessible, Polygon/Stellar), Ondo Finance OUSG ($400M+, institutional), Ondo USDY ($400M+, retail accessible, 5%+ yield). Infrastructure lessons: SEC-registered products work on public blockchains, daily dividend distribution via smart contract works at scale, Polygon and Ethereum both support institutional use. The $28T Treasury market is 0.018% penetrated.

The Products

BlackRock BUIDL (Ethereum, Polygon): Launched March 2024. Institutional money market fund tokenized on-chain. $1.5B+ AUM. Requires minimum $5M investment. Built on Securitize's platform. Distributed USDC dividends daily directly to token holders.

Franklin Templeton BENJI (Polygon, Stellar): SEC-registered mutual fund (FOBXX). Polygon deployment processes transfers and records on-chain. $400M+ AUM. Available to retail investors through Apex Fintech.

Ondo Finance OUSG (Ethereum, Polygon, Arbitrum): Tokenized short-term US Treasuries and MBS. $400M+ AUM. Qualified purchaser institutional access. Daily yield distribution in USDC.

Ondo USDY (Ethereum, Solana, multiple): USDY is a yield-bearing stablecoin backed by Treasuries. Retail accessible. 5%+ APY paid automatically by the token's value appreciation.

Why This Matters for Builders

Infrastructure lessons: BlackRock BUIDL and Franklin BENJI have demonstrated that:

SEC-registered investment products can live on public blockchains (with proper transfer restrictions)

Daily automated dividend distribution via smart contract works at institutional scale

Polygon and Ethereum both support institutional use cases

The compliance infrastructure (Securitize, transfer agent, custody) is now proven

The opportunity: $28T in US Treasury market vs. $5B tokenized = 0.018% penetrated. The infrastructure is proven; regulatory clarity is improving; the growth runway is enormous.

Frequently Asked Questions

Questions Readers Ask

Everything you should know about this blockchain news update, explained in simple language.

1

Answers

Can a retail investor access tokenized US Treasuries?

Ondo USDY: accessible to retail investors (not a registered security, structured as a yield-bearing stablecoin). Franklin BENJI via Apex: retail accessible, $1 minimum. BlackRock BUIDL: $5M minimum, qualified purchasers only.

Strategic Insight

Ready to Build Tokenized Treasury Solutions?

Get expert guidance on building tokenized fund infrastructure.