BUIDL vs USDY: BlackRock vs Ondo Treasury Comparison

BUIDL vs USDY Overview

BlackRock's BUIDL and Ondo Finance's USDY are the two largest tokenized treasury products by assets under management, collectively holding over $5 billion. Both give holders exposure to short-duration U.S. Treasury bills on-chain, but they differ substantially in access requirements, token mechanics, chain deployment, and target audience. BUIDL is an institutional-grade fund restricted to qualified purchasers with a $5 million minimum. USDY is a tokenized note accessible to non-U.S. investors with a $100,000 direct minimum, or permissionlessly on secondary markets with no minimum at all.

The tokenized Treasury market surpassed $14 billion in mid-2026, growing roughly 85% through 2025 alone. As the GENIUS Act prohibits payment stablecoin issuers from paying yield directly on tokens, products like BUIDL and USDY have become the primary on-chain vehicles for conservative dollar yield.

Yield Mechanics and Distribution

Both BUIDL and USDY derive yield from the same underlying instrument: short-duration U.S. Treasury bills, typically with maturities under 90 days. The difference lies in how that yield reaches token holders.

BUIDL maintains a stable $1.00 NAV per token. Yield accrues daily and is distributed monthly as additional BUIDL tokens to each holder's wallet. This rebasing model means your token balance increases over time while each token stays pegged to one dollar. BlackRock's fund charges a management fee between 0.20% and 0.50% annually depending on the share class and chain.

USDY offers two variants. The default USDY is an accumulating token: yield causes the token price to rise above $1.00 over time, currently sitting around $1.15 after two years of accrued yield. The rUSDY variant is a rebasing wrapper that maintains a $1.00 price and distributes yield as additional tokens daily, similar to BUIDL. Holders can convert between USDY and rUSDY at a 1:1 ratio. Ondo charges a 0.25% annual management fee, deducted from portfolio yield before distribution.

As of September 2026, BUIDL offers approximately 3.44% APY and USDY offers approximately 3.54% APY. Both yields have declined from the 5%+ range seen in 2024, tracking the Federal Reserve's rate cuts through 2025 and 2026. The yield spread between the two products is typically narrow since both hold similar underlying assets.

Access Requirements and KYC

The most significant difference between BUIDL and USDY is who can hold them. BUIDL is restricted to qualified purchasers under the U.S. Investment Company Act: individuals with at least $5 million in investments, or institutions with at least $25 million. Every wallet must pass full KYC/AML screening through Securitize before it can send or receive BUIDL tokens. The token itself is a permissioned ERC-20 that checks an on-chain registry on every transfer.

USDY takes a different approach. Direct minting requires KYC through Ondo's portal with a $100,000 minimum, and U.S. persons are excluded. However, USDY circulates freely on secondary markets: anyone with a wallet can buy USDY on decentralized exchanges like Curve, Orca, or Aerodrome with no KYC and no minimum amount. This dual-access model gives USDY a much broader holder base of over 18,000 addresses compared to BUIDL's roughly 105 holders.

Chain Deployment

Both products have aggressively expanded their multi-chain footprint. BUIDL launched on Ethereum in March 2024 and has since expanded to 10 networks. USDY launched on Ethereum in August 2023 and is now on 12 networks, though Ondo discontinued minting on Aptos and Noble as of September 2026.

BUIDL's largest deployment is on Solana (~$946M), reflecting strong institutional demand on that chain. USDY's largest deployment is on Ethereum (~$1.02B), with Stellar holding a surprising ~$468M, likely driven by cross-border payment use cases on that network.

Redemption and Liquidity

BUIDL redemptions flow through Securitize's portal. Holders submit a redemption request, tokens are burned at the next NAV strike, and USD is delivered via wire transfer on a T+0 to T+1 basis. The minimum redemption is 250,000 USDC. Secondary market liquidity exists through Circle and through BUIDL's listing on Uniswap, where whitelisted investors can swap BUIDL for stablecoins 24/7, though only with approved market makers.

USDY redemptions operate on a T+1 basis for wire transfers. Ondo also supports instant minting and redemption via USDC with a $5,000 minimum and zero fees. Because USDY trades freely on DEXs, holders can also exit at any time on the secondary market without going through Ondo's redemption process, subject to market liquidity and potential slippage.

DeFi Integration and Composability

DeFi composability is where USDY and BUIDL diverge most sharply. BUIDL is a permissioned token: every wallet must be whitelisted, which limits its use in permissionless DeFi protocols. However, several workarounds have emerged. Securitize created sBUIDL, a 1:1 backed wrapper token that can be used as collateral on protocols like Euler to borrow USDC. FalconX accepts BUIDL as trading collateral for institutional clients. BlackRock listed BUIDL on Uniswap in February 2026, marking the firm's first direct DeFi step. Ondo Finance wraps BUIDL as part of its OUSG basket, and Aave has proposed a GHO Stability Module backed by BUIDL.

USDY's permissionless secondary market makes it far more composable. It serves as collateral on Drift Protocol (Solana), trades in Pendle yield markets (Ethereum), supplies to Morpho lending vaults, and has liquidity pools on Suilend, Cetus, Curve, and Orca. The accumulating token design is particularly well-suited for DeFi: protocols can treat USDY as a yield-bearing stablecoin that appreciates in value without requiring rebasing logic.

How Tokenized Treasuries Reshape the Stablecoin Landscape

Tokenized treasuries sit between traditional stablecoins and securities. Payment stablecoins like USDC and USDT hold Treasury bills in their reserves but keep the yield for themselves, passing none to holders. Under the GENIUS Act, this is now a regulatory requirement: payment stablecoins cannot pay interest. Tokenized treasuries like BUIDL and USDY fill the gap by passing yield through to holders, but at the cost of being classified as securities rather than payment instruments.

This creates a clear spectrum. On one end are pure payment stablecoins optimized for transfers and payment rails. On the other end are tokenized treasury products optimized for yield. Products like USDB on Spark serve the payment end of the spectrum on Bitcoin, where fast, near-zero-fee transfers matter more than embedded yield. Builders choosing between these products need to consider whether their use case prioritizes yield accrual, payment velocity, or capital efficiency as collateral. For a broader view of the tokenized treasury landscape, see our treasury bill token comparison tool.

Which Should You Choose

Choose BUIDL if you are a U.S.-based qualified purchaser or institution that needs the strongest brand credibility, a Moody's Aaa-mf rated product, and BNY Mellon custody. The $5 million minimum and permissioned transfer model ensure this is an institutional product through and through. BUIDL makes the most sense for treasury management, collateral posting, and institutional cash management on-chain.

Choose USDY if you need broader accessibility, DeFi composability, or are a non-U.S. investor who wants yield exposure without meeting qualified purchaser thresholds. USDY's permissionless secondary market and dual accumulating/rebasing token design make it the more flexible option for protocol integrations, treasury diversification, and smaller allocations. The choice between USDY (accumulating) and rUSDY (rebasing) depends on whether you need a stable unit price for accounting or prefer a simpler appreciation model.

For broader stablecoin comparisons beyond tokenized treasuries, see our research on Bitcoin-backed stablecoins and the deep dive on tokenized treasury yields.

Frequently Asked Questions

What is the difference between BUIDL and USDY?

BUIDL is a tokenized money market fund managed by BlackRock and administered by Securitize, restricted to qualified purchasers with a $5 million minimum. USDY is a tokenized note issued by Ondo Finance, accessible to non-U.S. investors with a $100,000 direct minimum or no minimum on secondary markets. Both hold short-duration U.S. Treasury bills and offer similar yields (~3.4%–3.5% APY as of September 2026), but differ in access model, KYC requirements, and DeFi composability.

Can U.S. investors buy USDY?

No. Ondo Finance restricts USDY to non-U.S. persons. U.S. investors seeking tokenized treasury exposure should look at BUIDL (requires qualified purchaser status), Franklin Templeton's BENJI/FOBXX (available to U.S. retail), or Ondo's separate OUSG product (for U.S. qualified purchasers). The geographic restriction on USDY is a regulatory design choice to avoid U.S. securities registration requirements for the broader holder base.

What yield do BUIDL and USDY pay?

As of September 2026, BUIDL offers approximately 3.44% APY and USDY offers approximately 3.54% APY. Both yields track short-term U.S. Treasury rates, which have declined from the 5%+ range seen in 2024 as the Federal Reserve cut interest rates. The slight yield difference reflects different fee structures and portfolio compositions rather than a structural advantage for either product.

Is BUIDL available on Solana?

Yes. BlackRock expanded BUIDL to Solana in March 2025, and the chain now holds the largest share of BUIDL AUM at approximately $946 million. The Solana deployment uses the same permissioned token model as other chains: wallets must be whitelisted through Securitize before they can hold or transfer BUIDL.

How does rUSDY differ from USDY?

USDY is an accumulating token whose price rises as yield accrues (currently ~$1.15 per token). rUSDY is a rebasing wrapper that maintains a stable $1.00 price and distributes yield as additional tokens daily. Both represent the same underlying claim on Ondo's Treasury portfolio and are convertible 1:1. The accumulating USDY is simpler for DeFi integrations because protocols do not need to handle rebasing logic. The rebasing rUSDY is easier for accounting and payment use cases where a stable unit price matters.

Can BUIDL be used as collateral in DeFi?

Directly, no: BUIDL is a permissioned token that restricts transfers to whitelisted wallets, which excludes most DeFi smart contracts. However, Securitize created sBUIDL, a 1:1 backed wrapper accepted as collateral on Euler Protocol for borrowing USDC. FalconX also accepts BUIDL as trading collateral for institutional clients. BlackRock's February 2026 listing on Uniswap expanded on-chain trading but remains restricted to approved counterparties.

What is the minimum investment for BUIDL vs USDY?

BUIDL requires a $5 million minimum subscription and limits participation to qualified purchasers (individuals with $5M+ in investments or institutions with $25M+). USDY requires $100,000 for direct minting through Ondo's KYC portal. However, USDY can be purchased on secondary DEX markets with no minimum and no KYC, making it accessible to retail investors outside the United States.

How do tokenized treasuries compare to yield-bearing stablecoins?

Tokenized treasuries like BUIDL and USDY are securities that pass U.S. Treasury yield to holders, while yield-bearing stablecoins like sDAI or USDS generate yield through lending or staking and may involve smart contract risk. Under the GENIUS Act, payment stablecoins like USDC and USDT cannot pay yield directly. Tokenized treasuries carry lower credit risk (backed by T-bills) but involve securities law compliance and access restrictions. The two categories are converging as stablecoin issuers explore regulatory pathways for yield distribution.

This tool is for informational purposes only and does not constitute financial advice. AUM figures, yields, and chain deployments are approximate and based on publicly available data from RWA.xyz and issuer disclosures as of September 2026. Yields fluctuate with U.S. Treasury rates. Always verify current data on the issuer's website before making investment decisions.