Tokenized Treasury Bill Comparison: USDY, OUSG, TBILL, BENJI, BUIDL

Tokenized Treasury Bills Compared

Tokenized US Treasury products bring government bond yields on-chain, letting holders earn T-bill returns through blockchain-native tokens rather than traditional brokerage accounts. The market has grown rapidly: tokenized Treasuries crossed $10 billion in total value in February 2026 and reached approximately $17 billion by mid-2026, spread across more than 70 distinct products.

Despite sharing the same underlying asset class, these products differ substantially in legal structure, minimum investment, redemption mechanics, chain availability, and investor eligibility. Some are SEC-registered mutual funds accessible at $20. Others are Cayman-domiciled vehicles requiring $5 million minimums and qualified purchaser status. The table below compares the most prominent tokenized Treasury products across key dimensions.

For a broader view of how yield-bearing tokens compare to traditional stablecoins, see our yield-bearing stablecoin comparison.

Product Deep Dives

Ondo USDY

USDY is a yield-bearing note issued by Ondo USDY LLC, a Delaware bankruptcy-remote vehicle. It represents a senior unsecured claim on a portfolio of short-duration US Treasuries (under six months) and insured bank deposits. As of mid-2026, USDY has approximately $2.1 billion in assets across eight chains, with the majority on Ethereum and Solana.

The yield (approximately 4.65% APY) accrues to the token price rather than rebasing supply. Ondo charges a 25 basis point management fee deducted from gross Treasury returns. Primary minting and redemption require KYC and a $100,000 minimum, but USDY trades freely on decentralized exchanges at any size. Primary issuance is restricted to non-US persons, though secondary-market acquisition by US participants occupies a legal gray area.

Ondo OUSG

OUSG is Ondo's institutional-grade product: a tokenized share of the Ondo Short-Term US Government Bond Fund LP, organized under Cayman Islands law. The fund's underlying asset is BlackRock BUIDL, custodied at BNY Mellon. OUSG carries a combined fee of approximately 35 basis points (15 bps Ondo, 20 bps BUIDL).

OUSG offers same-day settlement during US banking hours through its BUIDL integration. Eligibility is limited to qualified purchasers (individuals with $5 million or more in investments, institutions with $25 million or more). Smart contracts enforce allowlist permissioning, meaning only KYC-verified wallets can hold the token. OUSG is available on Ethereum, Mantle, and Polygon with approximately $625 million in AUM.

OpenEden TBILL

OpenEden's TBILL token is a registered professional fund under BVI law, with investment management by BNY Mellon Investment Management Singapore. It stands out for real-time, 24/7 settlement through its smart contract vault: investors deposit USDC and receive TBILL tokens whose NAV accrues daily.

TBILL was the first tokenized Treasury fund to receive a Moody's bond fund rating (A-bf) and holds an S&P AA+f/S1+ rating. The fund charges a 0.31% annual management fee. First-time deposits require 100,000 USDC, but subsequent deposits can be as low as 1 USDC. TBILL is available on Ethereum, Arbitrum, Base, Solana, BNB Chain, and XRP Ledger, with approximately $256 million in total assets.

Backed Finance bIB01

bIB01 takes a different approach: rather than holding Treasuries directly, it is a tokenized tracker certificate for the iShares $ Treasury Bond 0-1yr ETF (IB01). Issued by Backed Assets (JE) Limited, a Jersey-based SPV, bIB01 tokens are ERC-20 securities issued under the Swiss DLT Act. Each token is fully collateralized 1:1 by the underlying ETF shares.

Primary issuance requires KYC and is limited to non-US professional investors with a $100,000 minimum. However, bIB01 trades permissionlessly on decentralized exchanges, meaning retail users can acquire it on the secondary market without KYC and at any size. This dual-access model makes bIB01 one of the more accessible products for non-US retail investors. Backed Finance manages approximately $720 million across its full suite of 168 tokenized products.

Franklin Templeton BENJI (FOBXX)

BENJI is the most retail-accessible tokenized Treasury product. It represents shares of the Franklin OnChain US Government Money Fund (FOBXX), a US-registered mutual fund under the Investment Company Act of 1940. Launched in April 2021, it was the first US-registered fund to use a public blockchain as its transfer agent record.

With a $20 minimum investment via the Benji Investments app, FOBXX is available to both US retail and institutional investors. The fund is deployed across eight blockchains including Stellar, Polygon, Arbitrum, Aptos, Avalanche, Base, Solana, and Ethereum. AUM grew from approximately $594 million in January 2026 to over $2.5 billion by mid-2026. The tradeoff for regulatory clarity is a slightly lower yield (approximately 3.5% APY) and standard mutual fund redemption timing rather than instant on-chain settlement.

BlackRock BUIDL

BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) is the largest tokenized Treasury product by AUM, reaching approximately $2.5 to $3.7 billion by mid-2026. BUIDL functions as infrastructure for the broader ecosystem: Ondo's OUSG uses BUIDL as its underlying asset, and several other protocols integrate BUIDL as collateral.

BUIDL is strictly institutional. The $5 million minimum and qualified purchaser requirement exclude retail investors entirely. Full institutional onboarding (W-9/W-8BEN-E, subscription agreements, KYC/AML checks) takes five to ten business days. The fund is available on six chains: Ethereum, Aptos, Polygon, Optimism, Arbitrum, and Avalanche. Securitize serves as transfer agent and BNY Mellon as custodian.

Chain Availability

Chain support determines where these tokens can be used in DeFi protocols and which wallets can hold them. The following table maps each product to its supported networks.

Notably, none of these products are currently available on Bitcoin Layer 2 networks. As tokenized RWAs expand to new chains, Bitcoin L2 ecosystems like Spark represent a natural next frontier: combining Treasury yield with Bitcoin-native settlement could serve users who want dollar-denominated returns without leaving the Bitcoin network. For more on how stablecoins already operate on Bitcoin, see our research on stablecoins on Bitcoin.

Investor Eligibility and Access

One of the least understood dimensions of tokenized Treasuries is who can actually buy them. Roughly 97% of tokenized asset value sits outside US retail reach, concentrated in products requiring qualified purchaser status.

• Franklin Templeton BENJI: the primary retail path, accessible to US investors at a $20 minimum through the Benji app with standard KYC
• Backed Finance bIB01: permissionless on DEXs for non-US retail investors; no minimum on secondary markets
• Ondo USDY: available on DEXs for non-US persons; primary issuance restricted to non-US with $100,000 minimum
• OpenEden TBILL: accredited or professional investors only, $100,000 first deposit
• Ondo OUSG: qualified purchasers only ($5M+ individuals, $25M+ institutions)
• BlackRock BUIDL: qualified purchasers only with $5 million minimum

For investors who cannot meet these thresholds, yield-bearing stablecoins that wrap tokenized Treasury exposure (such as using BUIDL or T-bills as backing) offer indirect access. See our stablecoin yield comparison for current rates across those products.

Tokenized Treasuries vs DeFi Yield Farming

Tokenized Treasury products and DeFi yield strategies often produce similar headline APYs (both in the 3-5% range as of mid-2026), but the risk profiles are fundamentally different. Understanding these differences matters for anyone allocating capital between the two.

The yield on tokenized Treasuries comes from US government bond coupons: the most creditworthy fixed-income instrument available. The yield on DeFi farming typically comes from a mix of lending demand, protocol fees, and token emissions. When token emissions subsidize yields, rates can appear high but are structurally unsustainable: the protocol is paying you in its own inflationary currency.

Smart contract risk exists in both categories, but the attack surface differs. Tokenized Treasury contracts are relatively simple (mint/redeem/transfer with allowlist enforcement). DeFi yield strategies often involve stacking multiple protocols together: lending, swapping, and restaking across contracts that each carry independent vulnerability surfaces. The composability that makes DeFi powerful also multiplies risk vectors.

Liquidity dynamics also diverge. Tokenized Treasuries may impose withdrawal gates or settlement delays (T+1 is common), but the underlying asset is among the most liquid in the world. DeFi positions are generally liquid on-chain but can face bank-run dynamics during market stress, where everyone tries to exit simultaneously and liquidity evaporates.

For a deeper comparison of on-chain yield sources, see our research on tokenized treasuries and on-chain yield.

Integration with Bitcoin L2 Ecosystems

Tokenized Treasury products are currently concentrated on Ethereum, Solana, and EVM-compatible L2s. Bitcoin's growing Layer 2 ecosystem presents an opportunity to bring Treasury yields to a new user base: Bitcoin holders who want dollar-denominated returns without bridging to other chains.

Several technical pathways could enable this. Protocols like Taproot Assets allow arbitrary asset issuance on Bitcoin's Lightning Network. Bitcoin L2s with smart contract capabilities (such as Spark) could host tokenized Treasury vaults that settle natively on Bitcoin. Cross-chain bridges could bring existing products like USDY or TBILL to Bitcoin networks, though bridging introduces its own trust assumptions.

The combination of dollar-denominated savings from Treasury yields with Bitcoin's settlement guarantees is particularly relevant for emerging-market users. Many already use dollar stablecoins for savings and payments: adding yield without requiring a brokerage account or leaving the Bitcoin ecosystem would expand access significantly.

Regulatory Landscape

The regulatory treatment of tokenized Treasuries varies by jurisdiction and product structure. Franklin Templeton's FOBXX operates under the clearest framework: it is a US-registered mutual fund under the Investment Company Act of 1940, supervised by the SEC. Each BENJI token represents a fund share at $1.00 NAV.

BlackRock's BUIDL and Ondo's OUSG are offered under Regulation D Rule 506(c), exempting them from full SEC registration but limiting access to qualified purchasers. OpenEden operates under BVI financial regulation with BNY Mellon as custodian. Backed Finance's tracker certificates are issued under the Swiss DLT Act through a Jersey SPV.

In the US, the GENIUS Act and related legislation are shaping how tokenized securities interact with existing frameworks. The EU's MiCA regulation establishes requirements for crypto assets in Europe, though tokenized fund shares may fall under existing securities law rather than MiCA. For context on how this regulatory environment affects the broader stablecoin market, see our GENIUS Act analysis.

Mountain Protocol USDM: A Cautionary Note

Mountain Protocol's USDM was a yield-bearing rebasing stablecoin backed by short-duration US Treasuries. It peaked at approximately $155 million in market cap and offered 4-5% APY through daily rebase. However, Anchorage Digital acquired Mountain Protocol in May 2025, and USDM entered an orderly wind-down.

Minting ended in May 2025, yield ceased after 30 days, and the primary market closed in August 2025. Remaining reserves were deposited into a Uniswap pool against USDC. USDM is no longer backed by Treasuries and should not be considered an active product. Its wind-down illustrates a key risk of tokenized Treasury products: even well-designed protocols can be discontinued due to regulatory pressure, acquisition, or business strategy shifts.

How to Choose a Tokenized Treasury Product

The right product depends on your investor status, jurisdiction, and priorities:

• US retail investor seeking regulated exposure: Franklin Templeton BENJI is the only SEC-registered option with a $20 minimum
• Non-US retail investor wanting permissionless access: Backed Finance bIB01 on DEXs or Ondo USDY on secondary markets
• Accredited investor seeking real-time settlement: OpenEden TBILL offers 24/7 vault-based minting and redemption
• Institution needing the largest, most liquid product: BlackRock BUIDL with $2.5B+ AUM and institutional-grade custody at BNY Mellon
• DeFi protocol seeking composable Treasury collateral: OUSG or USDY, both widely integrated across Ethereum DeFi

For a broader comparison of platforms that tokenize real-world assets beyond Treasuries, see our RWA tokenization platform comparison.

Frequently Asked Questions

What are tokenized Treasury bills?

Tokenized Treasury bills are blockchain-based tokens that represent ownership or economic exposure to US government debt securities. The issuer purchases T-bills through a regulated custodian (typically BNY Mellon) and mints on-chain tokens that track the value and yield of those underlying bonds. Holders earn yield from government bond coupons rather than from lending, staking, or token emissions.

Are tokenized Treasuries safe?

The underlying asset (US Treasury bills) carries minimal credit risk. However, tokenized Treasury products introduce additional layers of risk: smart contract vulnerabilities, custodian counterparty risk, regulatory changes that could force product wind-downs (as happened with Mountain Protocol's USDM), and liquidity risk during redemption. The legal structure matters: an SEC-registered fund like FOBXX offers stronger investor protections than an offshore SPV.

Can I buy tokenized Treasuries without being an accredited investor?

Yes, but options are limited. Franklin Templeton's BENJI (FOBXX) is available to US retail investors with a $20 minimum through the Benji Investments app. Non-US retail investors can acquire Backed Finance's bIB01 permissionlessly on decentralized exchanges, or purchase Ondo's USDY on secondary markets. Most other products require accredited or qualified purchaser status.

How do tokenized Treasury yields compare to DeFi lending rates?

As of mid-2026, tokenized Treasury products yield approximately 3.5-4.65% APY, while DeFi stablecoin lending rates on protocols like Aave V3 hover around 3.5-3.6% supply APY. The yields are comparable, but the risk profiles differ significantly. Treasury yields come from US government bond coupons (effectively risk-free rate), while DeFi lending yields depend on borrower demand and carry smart contract, oracle, and liquidation risks.

What is the difference between USDY and OUSG?

Both are issued by Ondo Finance but serve different markets. USDY is structured as a senior unsecured note from a Delaware LLC, available to non-US persons with no minimum on secondary markets. OUSG is a Cayman Islands fund share backed by BlackRock BUIDL, restricted to qualified purchasers ($5M+ individuals). OUSG offers same-day settlement during banking hours, while USDY settles T+1. USDY is available on more chains (eight vs three for OUSG).

Why is BlackRock BUIDL significant?

BUIDL is the largest tokenized Treasury product by AUM ($2.5-3.7 billion as of mid-2026) and functions as infrastructure for the broader tokenized Treasury ecosystem. Ondo's OUSG uses BUIDL as its underlying asset, and multiple DeFi protocols accept BUIDL as collateral. Its scale and BlackRock's institutional reputation provide a credibility anchor for the entire tokenized RWA category.

Can tokenized Treasuries work on Bitcoin?

Not yet at scale, but the technical infrastructure is developing. Bitcoin Layer 2 networks with smart contract capabilities could host tokenized Treasury vaults that settle on Bitcoin. Protocols like Taproot Assets enable asset issuance on Lightning. The combination of Treasury yields with Bitcoin's settlement properties would serve users who want dollar-denominated savings without leaving the Bitcoin ecosystem, a use case already served by stablecoins like USDB on Spark.

This tool is for informational purposes only and does not constitute financial or investment advice. Yields, AUM figures, and availability data are approximate and based on publicly available information as of mid-2026. Tokenized securities may carry regulatory, smart contract, and counterparty risks. Always verify current data directly with issuers before making investment decisions.