Tokenized Treasuries Market Size: $16B Across 91 Funds

The most useful thing to know about the tokenized treasuries market is not its size. It is that two funds of almost identical size can be built for completely different people. Ondo's U.S. Dollar Yield token and BlackRock's BUIDL fund each hold roughly $2.2 to $2.3 billion of onchain value, yet one is held by thousands of wallets and the other by a few dozen. That gap, not the total, is what you actually need to understand.

The tokenized treasuries market size reached roughly $16.17 billion across 91 assets and 36 issuers (Allium data, October 12, 2026). These are onchain tokens that represent shares in funds holding short-dated U.S. government debt, bank deposits, or equivalent cash instruments, settled and transferred on public blockchains rather than through traditional fund administrators.

Key takeaways

• The onchain tokenized treasuries and money market segment stood at about $16.17B across 91 assets from 36 issuers (Allium data, October 12, 2026).
• The largest products cluster around $2B each: Hashnote, Ondo, BlackRock, and Franklin Templeton all run funds at or above the billion-dollar mark (Allium data, October 12, 2026).
• Headline market cap tells you how much value is tokenized, not who can hold it. Holder counts separate open-access retail-reachable products from permissioned institutional ones.
• The reported figure is onchain token market cap, which can differ from a fund's total assets under management.
• Big traditional asset managers (BlackRock, Franklin Templeton, WisdomTree, State Street) now issue alongside crypto-native firms, which is the clearest sign the category has moved past experiment.

Why $16B is a real milestone, not a rounding error

Five years ago, tokenized government debt was a pilot program. Today it is a working market with brand-name issuers. BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), launched in partnership with tokenization firm Securitize, is described on Securitize's own site as a tokenized fund investing in cash, U.S. Treasury bills, and repurchase agreements. Franklin Templeton runs its OnChain U.S. Government Money Fund, which the firm has documented through its own fund materials as recording share ownership on a blockchain. WisdomTree, Janus Henderson (via Anemoy), and State Street (via a Galaxy sweep fund) all appear in the current issuer set.

Why should you care that these names showed up? Because treasuries are the risk-free rate's home. When the most conservative, most regulated corner of asset management starts recording ownership onchain, the plumbing underneath has to be dependable enough to satisfy fund boards, auditors, and regulators. That is a higher bar than most crypto products ever face, and clearing it signals the rails are maturing. For the mechanics of how these instruments are constructed, our explainer on how tokenized treasuries work and why they matter walks through the full lifecycle.

How a tokenized treasury fund actually functions

The steps are consistent across most issuers, even when the legal wrappers differ:

1. A fund holds real assets. An investment vehicle buys short-dated Treasury bills, repos, or bank deposits, exactly as a traditional money market fund would.
2. Ownership is recorded as a token. Instead of (or alongside) a transfer agent's ledger, each share is represented by a token on a blockchain. The token's supply tracks the fund's outstanding shares.
3. Eligibility is enforced at the token level. Many funds use permissioned tokens: only wallets that have cleared know-your-customer and accreditation checks can receive or hold them. Others are structured to reach a broader set of qualified holders.
4. Yield accrues onchain. Interest from the underlying bills flows to holders, either by increasing the token balance, increasing the token's price, or distributing a separate reward token.
5. Redemptions settle against the fund. Holders redeem tokens for the underlying cash value, subject to the fund's terms.

The payoff versus the legacy process is concrete. Faster settlement: a transfer that clears onchain in seconds does not leave capital locked for the traditional T+1 or T+2 window. Longer availability: tokens can move outside the hours a transfer agent keeps. Composability: a tokenized treasury can serve as collateral in an onchain lending or repo market without first being redeemed back to cash.

The number that matters more than market cap

Here is the tension at the center of this market. Market cap measures tokenized value. It says nothing about reach. Consider two funds of nearly identical size (Allium data, October 12, 2026):

Figures above reflect Allium data, October 12, 2026.

Read the holder counts correctly. A permissioned institutional fund with a handful of holders is not failing. It is doing exactly what it was designed to do: serve a small number of large allocators who each clear strict eligibility checks. JPMorgan's fund with four holders and State Street's with five are eligibility-restricted products built for institutional allocators, so a low count there is a design feature, not a verdict on demand. A sweep fund that moves hundreds of millions for a few institutions is working as intended at five holders.

Equally, a product like USDY or Spiko with thousands of holders is not inherently better. It is built to reach a wider eligible audience, which produces a different holder shape. When you see a tokenized treasuries ranking that sorts purely by market cap, remember it collapses two very different kinds of product into one list.

Onchain market cap is not AUM

One correction worth internalizing: the $16.17B figure counts onchain token market cap, the value represented by tokens living on public chains. A fund's total assets under management can be larger, because an issuer may run an onchain share class alongside a much bigger off-chain one. When a headline says a tokenized fund "manages" a number, check whether it means the tokenized slice or the whole vehicle. They are frequently different, and conflating them overstates how much of the asset-management world has actually moved onchain.

What makes these numbers hard to produce

Counting a tokenized treasuries market sounds simple and is not. The same economic instrument can exist as several tokens on several chains, issued under different legal wrappers, with yield delivered three different ways. To report one honest market-size figure, every record has to resolve to the same fields: which asset, which issuer, which chain, the token's supply, its market cap, its holder count, and whether a given transfer is a mint, a redemption, a secondary transfer, or a yield distribution. A rebasing token that grows balances looks nothing like an accruing token that grows price, yet both have to be counted consistently or the total is wrong.

This is the normalization problem that sits under any tokenized treasuries market size figure. Allium standardizes these records across 150+ chains into consistent asset, issuer, supply, and holder fields, which is how a cross-issuer total like $16.17B gets assembled from otherwise incomparable raw data. The underlying tables are documented in the RWA datasets for readers who want the schema.

Risks and open questions

• Eligibility limits reach. Permissioned tokens cannot freely circulate. That protects compliance but caps composability, since a permissioned treasury token cannot drop into every onchain protocol the way a public stablecoin can.
• Market cap is not liquidity. A large permissioned fund may have thin secondary trading. Size does not guarantee you can exit quickly at scale.
• Legal structures vary by jurisdiction. A fund reachable by non-U.S. retail users may be closed to U.S. persons entirely. The same ticker can mean different access rights depending on where you sit.
• Settlement guarantees are still maturing. True delivery-versus-payment onchain is not yet universal. Our piece on atomic settlement for tokenized securities covers where the gaps remain.
• Concentration risk. A handful of issuers hold most of the value. If one large fund faced a redemption event, the segment total could move sharply.

Where this goes next

The direction of travel is clear even if the pace is not. Traditional asset managers keep launching onchain share classes, and the infrastructure questions (eligibility enforcement, settlement finality, custody of record) are being answered one fund at a time. The market-size number will keep climbing, but the more revealing metrics will be holder composition, the share of funds that reach beyond a dozen institutional allocators, and how much tokenized treasury value ends up usable as collateral elsewhere onchain. Watch those, not just the headline total.

Frequently asked questions

How big is the tokenized treasuries market?

The onchain tokenized treasuries and money market segment was roughly $16.17 billion across 91 assets from 36 issuers (Allium data, October 12, 2026). This counts onchain token market cap, which can differ from the total assets under management of the underlying funds.

Who are the largest issuers of tokenized treasuries?

The largest funds cluster around $2 billion each and include Hashnote's Short Duration Yield Coin, Ondo's U.S. Dollar Yield, BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), and Franklin Templeton's OnChain Institutional Liquidity Fund (Allium data, October 12, 2026). The issuer set spans both crypto-native firms and large traditional asset managers such as WisdomTree and State Street.

Why do two tokenized treasury funds of the same size have very different holder counts?

Holder count reflects access design, not quality. Permissioned institutional funds are sold to a small number of eligibility-checked allocators, so a fund serving large institutions may have only a handful of holders by design. Open-access funds built to reach a broader eligible audience can have thousands of holders at a similar market cap.

Is onchain market cap the same as a fund's assets under management?

No. Onchain market cap measures the value represented by tokens on public blockchains. A fund can run a tokenized share class alongside a larger off-chain one, so its total AUM may exceed the onchain figure. Treating the two as identical overstates how much asset-management value has moved onchain.

What is a tokenized treasury?

A tokenized treasury is a blockchain token that represents a share in a fund holding short-dated U.S. government debt, repos, or bank deposits. The token records ownership and lets the position settle and transfer onchain, often faster and for longer hours than traditional fund transfer processes allow.

Can anyone buy tokenized treasuries?

Not usually. Many tokenized treasury funds use permissioned tokens that only reach wallets cleared through know-your-customer and accreditation checks, and some exclude U.S. persons entirely. Access rights depend on the specific fund's legal structure and your jurisdiction.

Why is it hard to measure the tokenized treasuries market size?

The same instrument can exist as several tokens across several chains under different legal wrappers, with yield delivered as rebasing balances, rising prices, or separate reward tokens. Producing one honest total requires normalizing every record to consistent fields for asset, issuer, chain, supply, and holder count so otherwise incomparable data can be summed.

Interested in learning more about Allium’s RWA data? Speak to someone on the team.

Allium provides onchain data infrastructure. Companies named in this article may be Allium customers, prospects or commercial counterparties. The authors and other Allium personnel may hold positions in the assets discussed. This article is informational only and is not investment, legal or tax advice. Data and information last reviewed: October 12, 2026.