A tokenized Treasury is usually a share in a fund that holds short-term U.S. government debt, recorded as a token on a blockchain. The holder owns the fund share. The fund owns the Treasury bills, repo agreements and cash, and the holder’s rights come from the fund’s documents. That is different from holding a Treasury bill directly, and different again from holding a payment stablecoin.

The token is not the same thing in every product. Two questions separate them quickly: how the income reaches you, and who is allowed to hold the token. The table below answers both for five widely cited products, using only each issuer’s own pages.

Five tokenized Treasury funds, checked against issuer documents

Checked on November 6, 2026. Fund sizes and yields change daily and are left out on purpose; the issuer pages linked here carry the current figures.

Token Fund behind it Value per token How income arrives Who can hold it Networks named by the issuer
BUIDL BlackRock USD Institutional Digital Liquidity Fund Seeks a stable $1 Accrued daily, paid the next business day as new BUIDL tokens Qualified investors; transfers only to whitelisted wallets; $5 million initial minimum at launch Aptos, Arbitrum, Avalanche, Ethereum, Optimism, Polygon
BENJI Franklin OnChain U.S. Government Money Fund (FOBXX) 1 BENJI = 1 FOBXX share; the fund tries to keep a stable $1.00 share price Dividends declared daily and reinvested as new shares, minted to holders’ wallets Shareholders onboarded through the Benji app or institutional portal; the transfer agent whitelists wallets and can limit transfers Stellar, Polygon, Arbitrum, Avalanche, Aptos, Ethereum, Base, Solana, BNB Smart Chain
USTB Invesco Short Duration US Government Securities Fund NAV per share started at $10.000000 and rises continuously No distributions; income shows up in the NAV per share Allowlisted addresses; $100,000 minimum unless waived Ethereum, Solana, Plume
OUSG Ondo Short-Term US Government Treasuries NAV per token, updated at the end of each business day through an onchain oracle Income is reflected in the NAV Investors onboarded to Ondo’s Qualified Access Funds; $5,000 minimum for instant mints and redemptions, $100,000 for non-instant subscriptions Not listed on the overview page
USYC Hashnote International Short Duration Yield Fund Ltd. Token price published by an onchain oracle Through the published token price Only entities that are not U.S. Persons under Regulation S Ethereum (contract verified on Etherscan, per Circle)

Two things in that table are easy to get wrong from secondary sources. BlackRock’s March 20, 2024 launch release said BUIDL paid accrued dividends as new tokens each month. Securitize’s BUIDL page now says dividends accrue each calendar day to the holder of record at 3:00 p.m. ET and are paid the following business day as new tokens. And OUSG is a fund of funds: Ondo says its portfolio is invested in funds from BlackRock, Franklin Templeton, WisdomTree, Fidelity and others, plus bank deposits and USDC for liquidity. An OUSG holder is two layers away from the Treasury bills.

The two income models, worked through

This is a calculation for illustration, not a quote of any fund’s yield. Assume $100,000 goes into each kind of token and the portfolio earns 4% a year after fees for 30 days, with no other price changes.

Stable-$1 token (BUIDL, BENJI model) Rising-NAV token (USTB, OUSG model)
Tokens received on day 1 100,000 at $1.00 10,000 at $10.00
Income for 30 days $100,000 × 4% × 30 / 365 = $328.77 Same $328.77
Tokens held on day 30 About 100,328.77 10,000
Value per token on day 30 $1.00 About $10.0329
Wallet value on day 30 About $100,328.77 About $100,328.77

The money is the same; the way it shows up in the wallet is not. In the first model the token count grows, so a block explorer shows new tokens arriving that nobody sent you. In the second model the token count never moves, so a wallet that prices every token at $1 or at the last trade will show the wrong value. Accounting and tax records also differ: new tokens are dividends paid in shares, while a rising NAV is a change in the price of shares you already hold. Confirm the treatment with the fund’s own tax documents.

The chain records the share, not the Treasury security

The Invesco USTB documentation describes shares in a fund that invests in short-duration U.S. Treasury bills. Shares can be held as tokens on Ethereum, Solana or Plume, or in book-entry form with Superstate, and book-entry shares can be converted into tokens.

Franklin Templeton puts the point plainly in the FOBXX prospectus: the transfer agent keeps the official record of share ownership in a blockchain-integrated system, and it has the ability to correct errors and unauthorized transactions and to limit the transferability of fund shares. A blockchain explorer is not a replacement for the offering documents.

The term “tokenized Treasury” does not by itself identify whether the holder owns a fund share, a share in a fund of funds, a note or another instrument. Read which one it is before anything else.

Transferability has conditions

Every product in the table limits who can hold the token. BUIDL permits transfers only to whitelisted investors. USTB moves freely between addresses on its allowlist. OUSG can move between investors already onboarded to Ondo’s Qualified Access Funds. USYC is available only to entities that are not U.S. Persons.

So a token showing up in a wallet or an app does not mean every person can buy, receive or redeem it. A token being usable as collateral in one lending arrangement does not remove the restrictions or the risks of the fund underneath.

Redemption is an operational process

Tokens can move on weekends; the funds behind them do not all redeem on weekends. Securitize says BUIDL redemption requests must reach the transfer agent between 8:00 a.m. and 3:00 p.m. ET for same-day settlement. USTB pays USDC redemptions immediately, including on non-business days, subject to available liquidity, and USD redemptions the same day if the request arrives before 1:00 p.m. ET. On U.S. market holidays, USTB says no Treasury bills are bought or sold. OUSG’s instant USDC redemptions are capped by daily limits shown on Ondo’s website; larger amounts go through a non-instant request. Circle says USYC subscriptions and redemptions settle atomically against USDC.

Before treating a tokenized fund as cash, check the fund’s eligibility rules, valuation, fees, liquidity limits and redemption cut-offs. For a different mechanism, see stablecoin redemption and stablecoin vs CBDC vs tokenized deposit.

Questions

What is a tokenized Treasury?

In the products above, a fund share recorded as a token. The fund holds short-term U.S. government debt, repo and cash; you hold the share and the rights the fund documents give you.

Are tokenized Treasury bonds the same as owning Treasury bonds?

No. None of the five products gives the holder a specific Treasury bill or bond. They hold fund shares, and the funds mostly hold short-term bills and repo rather than long-dated bonds.

Do tokenized Treasuries stay at $1?

Some try to. BUIDL seeks a stable $1 and BENJI’s fund tries to keep a stable $1.00 share price; BlackRock states BUIDL may not be able to keep $1.00 at all times. USTB and OUSG are designed so the price per token rises as income accrues.

Can anyone buy tokenized Treasuries?

Not without onboarding. Each of these five requires onboarding with the issuer or its transfer agent before a subscription. BUIDL is limited to qualified investors, OUSG to investors onboarded to Ondo’s Qualified Access Funds, and USYC excludes U.S. Persons. Minimums run from $5,000 for OUSG instant mints to $5 million for BUIDL at launch.

Are tokenized Treasuries stablecoins?

No. A payment stablecoin aims to be redeemable at a fixed value and usually pays the holder no income. A tokenized Treasury fund share passes the portfolio’s income to the investor, under securities rules and transfer restrictions. See stablecoin yields for platforms that publish rates on stablecoin balances.

Sources