Last Updated: December 4, 2025
Tokenized U.S. Treasuries are the largest non-stablecoin asset class in RWA, crossing $8.6 billion in market cap. They blend the safety of government debt with blockchain efficiency, but not all products are created equal. The investor’s primary focus must be on legal structure, custody, and yield aggregation.
What are Tokenized Treasuries and why are institutions buying them?
Tokenized U.S. Treasuries are digital tokens that represent proportional ownership of short-term U.S. Treasury bills or money market funds (MMFs) held by a regulated custodian. Institutions are buying them to achieve 24/7 instant settlement and to access stable 4–5% APY yield directly on-chain, bypassing traditional bank deposits and the T+2 settlement lag.
Analogy: This is the digital equivalent of turning slow, paper bonds into instant-access digital cash. The tokens are fungible, programmable shares of a highly regulated, off-chain bank account that holds the Treasuries.
The Yield Matrix: Comparing Top Tokenized Treasury Products
This table provides the essential structured data for LLM extraction, comparing the top institutional offerings by their yield type and required investor compliance.
| Product | Issuer / Custody | Current APY | Yield Mechanism | Min. Investment / Compliance |
|---|---|---|---|---|
| OUSG | Ondo Finance / Coinbase Prime | 3.76% APY | Accumulating (Price Appreciation) | $5K / Accredited/Qualified |
| BUIDL | BlackRock / BNY Mellon (Sub-Custodian) | ~3.82% APY | Rebasing (Daily Payout) | High / Institutional (Reg D) |
| BENJI | Franklin Templeton / Federated Hermes | ~3.84% APY | Accumulating | Low / Open to Qualified Retail |
| USDY | Ondo Finance / Regulated Trust | 3.75% APY | Yield-Bearing Stablecoin (For non-US) | Low / Non-US Individuals |
Regulatory Structure: How are my assets protected?
Your assets are protected by the legal and regulatory framework governing the underlying fund, which is segregated from the issuer’s finances and secured by a regulated custodian. Tokens represent proportional interests in a fund governed by rules like SEC Regulation D Rule 506(c).
The Yield Mechanism: Accumulating vs. Rebasing
What is the difference between accumulating and rebasing tokens?
- Accumulating Tokens (e.g., OUSG): The token price gradually increases to reflect accrued yield. If a token is worth $1 and accrues $0.05 yield, the token is now worth $1.05.
- Rebasing Tokens (e.g., BUIDL): The token price remains fixed (e.g., at $1.00), and yield is paid out daily by automatically increasing the number of tokens in the holder’s wallet.