Tokenized Treasuries · Updated Feb 2026

Who Custodies
Tokenized Treasuries?

Tokenized U.S. Treasury products have surpassed $10.9B in total value locked. Behind every on-chain token is a multi-link custody chain: U.S. Treasury → clearinghouse → custodian → tokenization platform → on-chain token. We break down every link.

Custody Architecture

The Treasury Tokenization Custody Chain

01

U.S. Treasury Bonds

The underlying asset: U.S. government debt obligations backed by the full faith and credit of the United States. T-Bills (≤1 year), T-Notes (2-10 years), or reverse repo agreements.

02

DTCC / Federal Reserve

The Depository Trust & Clearing Corporation (DTCC) clears and settles the trades. The Federal Reserve Bank of New York holds Treasury securities in book-entry form.

03

Qualified Custodian

BNY Mellon, JPMorgan, Morgan Stanley, or Clear Street hold the securities on behalf of the fund. These are SEC-registered, SIPC-member qualified custodians.

04

Fund / SPV

The tokenized fund (BlackRock BUIDL, Franklin BENJI, Ondo OUSG) or Special Purpose Vehicle holds the securities through the custodian. The fund is typically SEC-registered.

05

Tokenization Layer

Securitize (for BlackRock), or in-house platforms (Franklin, Ondo) create the on-chain representation. Transfer agent functions include KYC/AML, mint/burn, and compliance enforcement.

06

On-Chain Token

The token you hold on Ethereum, Polygon, Solana, etc. Each token represents a pro-rata share of the underlying Treasury securities held in custody.

Platform Breakdown

Major Tokenized Treasury Products

BlackRock BUIDL

BlackRock USD Institutional Digital Liquidity Fund
$2.5B+

Largest tokenized treasury fund. SEC-registered. BNY Mellon custody with Securitize as transfer agent.

Custodian
BNY Mellon
Tokenization
Securitize
Chains
Ethereum, Polygon, Arbitrum, Optimism, Avalanche
Min Investment
$5M (accredited investors)
Yield
~5.2% APY

Franklin Templeton BENJI

Franklin OnChain U.S. Government Money Fund
$700M+

First SEC-registered fund on a public blockchain. Lowest minimum investment. On-chain share ownership via BENJI token.

Custodian
Bank of New York Mellon, JPMorgan
Tokenization
Franklin Templeton (in-house)
Chains
Stellar, Polygon, Ethereum, Arbitrum, Base, Avalanche
Min Investment
$20 minimum
Yield
~5.1% APY

Ondo OUSG

Ondo Short-Term U.S. Government Treasuries
$500M+

DeFi-native tokenized treasury product. Integrates with Flux Finance for on-chain lending against OUSG.

Custodian
Morgan Stanley, Clear Street
Tokenization
Ondo Finance
Chains
Ethereum, Polygon, Solana
Min Investment
$5,000
Yield
~5.2% APY

Ondo USDY

Ondo U.S. Dollar Yield
$400M+

Tokenized note backed by U.S. Treasuries. No accreditation required for non-U.S. holders. Bankruptcy-remote SPV structure.

Custodian
Morgan Stanley, Clear Street
Tokenization
Ondo Finance
Chains
Ethereum, Solana, Mantle, Sui
Min Investment
$500
Yield
~5.1% APY

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