Tokenized US Treasuries: Best On-Chain Yield Products Compared in 2026

BlackRock BUIDL, Ondo OUSG, USDY, USYC, and Franklin BENJI compared: yield, minimums, chains, and DeFi integration for on-chain Treasury investing in 2026

SUMMARY: Tokenized US Treasuries have crossed $10 billion in on-chain value as of early 2026, with the total RWA sector (ex-stablecoins) exceeding $21 billion. The five leading on-chain Treasury products are: BlackRock BUIDL ($2.45B AUM, $5M minimum, 3.5–4% APY, 8 chains, institutional only); Circle USYC ($2.6B market cap, $100K minimum, ~3.5% APY, Ethereum + Solana, institutional and offshore); Ondo USDY ($1.4B TVL, accessible retail minimum, 3.55% APY, 8+ chains, non-US persons); Ondo OUSG ($692M TVL, $5,000 minimum, 3.49% APY, 4 chains, accredited investors); Franklin Templeton BENJI/FOBXX ($1.98B AUM, $20 minimum, 3.52% TTM yield, 7 chains, broadest retail access). The 7-day APY across the RWA.xyz universe averages 3.53%. For DeFi integration, OUSG and BUIDL are used as collateral across lending protocols. BUIDL is accepted as off-exchange collateral on Binance. The critical distinctions are: eligibility (US persons are excluded from most products), minimum investment (from $20 for BENJI to $5M for BUIDL), DeFi composability (OUSG and USYC lead), and redemption speed (USYC offers near-instant USDC redemption).

The yield that stablecoins are hiding from you

Every dollar of USDC or USDT you hold earns zero yield. Not approximately zero — exactly zero. Circle and Tether take your deposited dollars, invest them in US Treasury bills and money market instruments earning approximately 3.5–5% annually, and keep that yield for themselves. The stablecoin you hold is a non-interest-bearing claim on a fund that is generating Treasury-rate returns, and none of those returns flow to you.

This is not a criticism of the stablecoin model specifically — it is simply how it works, and it is by design. The yield subsidises operations, funds reserves, and generates the profit that makes stablecoin issuance economically rational.

Tokenized Treasuries flip this arrangement. When you hold BUIDL, USDY, OUSG, USYC, or BENJI, the fund’s underlying Treasury yield accrues to you — daily, automatically, through either a rising token price or a rebasing mechanism that adds new tokens to your balance. The 7-day APY across the RWA.xyz tokenized Treasury universe averages 3.53%. On $100,000 in idle capital, the annual difference between holding USDC and holding a tokenized Treasury is $3,530 in yield you either receive or forfeit.

The tokenized US Treasury market has crossed $10 billion in on-chain value as of early 2026. The total RWA sector excluding stablecoins has surged past $21 billion, with some analytics showing figures between $19 and $36 billion depending on inclusions. Tokenized US Treasuries dominate at approximately 42–45% of the sector, with top chains being Ethereum at approximately 65% followed by BNB Chain, Solana, and others.

This is not a niche product for crypto insiders. BlackRock is in this market. Franklin Templeton launched the first product in 2021. Circle acquired Hashnote to build USYC. Securitize manages over $4 billion in tokenized assets. The most sophisticated institutions in traditional finance have concluded that tokenizing Treasuries is not a crypto experiment — it is the future of institutional cash management.

This guide compares the five products that matter, with the data you need to decide which is right for your capital, your jurisdiction, and your DeFi integration requirements.

The market context: why tokenized Treasuries are growing at this speed

Understanding the growth velocity requires understanding the problem they solve.

Traditional money market funds — the institutional cash management vehicle that tokenized Treasuries most directly compete with — operate on banking hours. They settle in T+1 or T+2. They are inaccessible on weekends. They cannot be used as collateral in DeFi protocols. They require a brokerage account, often have meaningful minimums, and are denominated in fiat that never touches a blockchain.

For the growing ecosystem of institutions that now operate on-chain — crypto exchanges, DeFi protocols, crypto funds, DAOs — these constraints are operationally painful. Capital that is not earning yield is wasting returns. Capital locked in traditional cash management is unavailable for on-chain deployment. The question for a DeFi protocol’s treasury is not whether to earn yield on idle USDC — it is which on-chain instrument to use.

Tokenized Treasuries are the answer the market has developed. They offer: Treasury-rate yield on assets that would otherwise be idle stablecoins, 24/7 redemption compared to banking-hours-only traditional funds, on-chain programmability enabling use as collateral in DeFi, and atomic settlement without correspondent banking friction.

The collateral use case is particularly important and is underreported. Treating tokenized Treasuries as collateral rather than as a pure yield product is what drives the institutional adoption curve. BUIDL accepted by Binance for off-exchange margin. USYC used on-chain in DeFi lending. OUSG backing stablecoin issuance at Frax and elsewhere. When a product earns 3.5% and also serves as margin, it replaces cash on every institutional balance sheet that can legally hold it.

The DTCC Canton MVP shipping in H1 2026 adds institutional volume not yet reflected in current RWA.xyz numbers. DTCC-custodied Treasuries represent a $2.5-trillion-a-day market. Even a fraction migrating to a tokenized rail would dwarf today’s entire sector.

The five products compared

1. BlackRock BUIDL — the institutional benchmark

The headline figures:

• AUM: $2.45 billion
• Yield: 3.5–4% APY (after management fees of 0.2–0.5%)
• Minimum investment: $5 million USDC
• Minimum redemption: $250,000
• Available on: Ethereum, Avalanche, Aptos, Arbitrum, Polygon, Optimism, Solana, BNB Chain
• Token mechanics: Stable $1.00 price, yield paid via daily rebasing (new tokens added to balance monthly)
• Custody options: Anchorage Digital Bank, BitGo, Coinbase, Fireblocks
• Launched: March 2024

What it is:

BlackRock USD Institutional Digital Liquidity Fund (BUIDL), formally the largest tokenized Treasury fund in the world, is a regulated fund domiciled in the British Virgin Islands with Securitize serving as transfer agent and tokenization platform. The fund invests 100% of its total assets in cash, US Treasury bills, and repurchase agreements collateralized by Treasury securities.

Each BUIDL token maintains a stable $1.00 value. Yield accrues daily and is distributed monthly as additional tokens to investor wallets — a rebasing mechanism that makes the yield visible and compounding without requiring any action from the holder.

Why it matters beyond yield:

BUIDL’s February 2026 UniswapX integration made BUIDL shares tradeable through a request-for-quote system settled atomically on-chain against Flowdesk, Tokka Labs, and Wintermute. Robert Mitchnick, BlackRock’s Global Head of Digital Assets, called it “a notable step in the convergence of tokenized assets with decentralised finance” — the first time a traditional asset manager has publicly endorsed DEX infrastructure for distributing a regulated fund.

BUIDL is now accepted as off-exchange collateral on Binance, enabling institutions and advanced traders to deploy capital efficiently while maintaining exposure to tokenized Treasuries. This collateral functionality is the most consequential development in the tokenized Treasury space in 2026: an instrument that earns yield, trades atomically on-chain, and serves as margin collateral eliminates the need to choose between yield and liquidity.

Who it is for:

Institutional investors only. The $5 million minimum and whitelist-only transfer model make BUIDL inaccessible to retail. For DAOs with large treasuries, crypto funds, and institutional desks seeking the most credible, largest, and most liquid on-chain Treasury product, BUIDL is the benchmark.

DeFi integration status: Active and expanding. Ethena holds BUIDL as backing for its USDtb stablecoin. UniswapX integration enables atomic DEX trading. Binance off-exchange collateral. The most DeFi-integrated institutional product in the market.

2. Circle USYC — the institutional stablecoin-adjacent product

The headline figures:

• Market cap: $2.6 billion (largest single tokenized Treasury by market cap as of early 2026)
• Yield: ~3.5% (rising token price model — yield accrues as token price increases)
• Minimum investment: $100,000
• Available on: Ethereum, Solana
• Token mechanics: Rising price (not rebasing) — token value increases daily as yield accrues
• Redemption: Near-instant to USDC via 1:1 redemption up to instant-redemption capacity
• Custodian: Circle International Bermuda Limited
• US persons: Not available (non-US persons only)

What it is:

USYC is the on-chain representation of the Hashnote International Short Duration Yield Fund Ltd., which invests in US Treasury bills and reverse repurchase agreements backed by short-term US government securities. Circle acquired Hashnote in early 2025 and folded USYC into its stablecoin-adjacent offering.

The rising price model distinguishes USYC from rebasing products: rather than adding tokens to your balance, USYC’s token price increases daily. One USYC token held today is worth slightly more in USDC tomorrow. This model simplifies accounting and tax treatment for institutional users tracking position values in a single number rather than fluctuating balances.

Circle’s pitch is that USYC functions as a yield-bearing stablecoin for institutions that cannot or do not want to hold raw USDC. A single API connects USYC and USDC, enabling efficient movement between yield-bearing capital and liquid cash across on-chain workflows. USYC can be redeemed 1:1 into USDC in near real time up to the instant-redemption capacity.

The collateral use case:

USYC serves as yield-bearing margin or cross-margin collateral on supported exchanges and lending desks, keeping capital productive while securing positions. The redemption-to-USDC mechanism makes USYC particularly clean for institutions managing trading workflows: you earn yield on idle capital, and when you need to execute a trade, the conversion to USDC is instant.

USYC activity is visible on-chain, with token balance, yield, and price streamed to a transparent oracle feed. ERC-20 contract details are verified on Etherscan.

Who it is for:

Institutional and sophisticated investors outside the United States seeking a yield-bearing alternative to USDC for cash management and collateral. The $100,000 minimum makes it inaccessible to retail. For crypto trading desks and DeFi protocol treasuries, the seamless USYC-to-USDC conversion and collateral functionality makes it arguably the most operationally clean product in the market.

DeFi integration status: Strong collateral use across supported exchanges and lending desks. API integration with USDC enables seamless DeFi workflow.

3. Ondo USDY — the retail-accessible Treasury yield token

The headline figures:

• TVL: $1.4 billion
• Yield: 3.55% APY
• Minimum investment: Low retail-accessible threshold (no $5K+ institutional minimum)
• Available on: Ethereum, Solana, Arbitrum, Mantle, Sei, Sui, Aptos, XRP Ledger (8+ chains)
• Token mechanics: Rising price model — token value accrues daily yield
• Daily reserve attestations: Yes, third-party
• Holding period: 40-day minimum before transfer
• US persons: Not available

What it is:

USDY — Ondo US Dollar Yield Token — is Ondo Finance’s flagship retail-accessible tokenized Treasury product. Backed by a transparent portfolio of short-term US Treasuries and bank demand deposits, USDY combines the stability of a stablecoin with daily Treasury-backed yield accrual. As of January 2026, USDY delivers approximately 3.55% APY and has grown to approximately $1.4 billion in TVL.

USDY is designed for a wide range of on-chain financial use cases. As a savings vehicle, users hold USDY to earn daily interest without crypto price volatility. As a payments instrument, it can be used for direct transactions while still earning yield. As DeFi collateral, it is integrated across protocols on supported chains.

The bankruptcy-remote structure and daily third-party reserve attestations provide a level of transparency that most stablecoins do not offer — you can verify what backs your token, updated daily. Custody is handled by Fireblocks and Zodia Custody at the institutional level.

The chain breadth advantage:

USDY’s availability on eight chains is the broadest of any tokenized Treasury product in the market. This multi-chain presence is strategically significant: it means USDY can serve as Treasury-rate yield in DeFi ecosystems across Solana, Ethereum L2s, and alternative L1s simultaneously. For DeFi protocol treasuries and liquidity managers operating across multiple chains, USDY’s chain flexibility is its defining competitive advantage.

The 40-day holding period:

The 40-day minimum holding period before transfer is a critical restriction to understand. Investors must hold USDY for at least 40 days before they can transfer tokens to another wallet. This makes USDY a product for capital intended to be deployed on a medium-term basis — not a trading vehicle or a same-week liquidity solution. Plan around this constraint before committing capital.

Who it is for:

Non-US retail investors, DeFi users, and small institutions seeking Treasury-rate yield on stablecoin holdings without institutional minimum investment requirements. The most accessible product for the mass-market global user who wants to earn real yield rather than hold zero-yield USDC.

DeFi integration status: Broad multi-chain DeFi presence. Savings, payments, and collateral use cases across 8+ chains.

4. Ondo OUSG — the DeFi-native institutional Treasury token

The headline figures:

• TVL: $692 million
• Yield: 3.49% APY (management fees waived until July 1, 2026; 0.15% management/fund expense cap thereafter)
• Minimum investment: $5,000 (Ethereum); lower on some alternative chains
• Available on: Ethereum, Polygon, Solana, XRP Ledger
• Token mechanics: Rebasing — new tokens added to balance daily; underlying fund holds BlackRock BUIDL, Franklin Templeton, Fidelity, WisdomTree, Wellington Management assets
• Minting/redemption: 24/7 instant via USDC, 0% mint/redeem fees
• Holding period: None explicitly required
• US persons: Available to verified accredited investors (Regulation D Rule 506(c))

What it is:

OUSG — Ondo Short-Term US Treasuries Fund — is Ondo’s institutional-grade product, structured as interests in a 3(c)(7) fund under Regulation D Rule 506(c). Unlike USDY, which primarily invests directly in Treasuries, OUSG’s portfolio is managed by a diversified set of institutional partners including BlackRock (via BUIDL), Franklin Templeton, Fidelity, WisdomTree, and Wellington Management, alongside USDC and bank deposits for liquidity.

This multi-manager structure means OUSG’s underlying holdings are among the most blue-chip available in tokenised finance. It is effectively a tokenised fund-of-funds in the short-duration government securities space.

The DeFi integration leadership:

OUSG’s most distinctive feature is its DeFi composability. OUSG is integrated with Flux Finance — Ondo’s own lending protocol — where users can lend OUSG or borrow against it for additional DeFi opportunities. This creates a leverage pathway that no competing tokenized Treasury product has at equivalent scale: hold OUSG, earn 3.49% Treasury yield, deposit OUSG as collateral in Flux, borrow stablecoins at a spread, deploy those stablecoins in additional yield strategies.

Beyond Flux, OUSG is accepted as collateral across multiple DeFi lending venues and is used to back stablecoin issuance at Frax and other protocols. The token’s integration into the DeFi composability stack is deeper than any competing product.

The management fee waiver:

Management and fund expenses are capped at 0.15% and management fees are waived until July 1, 2026. This makes OUSG’s all-in effective yield among the highest available in the tokenized Treasury category through mid-2026. Investors who lock in positions before the waiver expires will have benefited from a period of unusually favourable cost structure.

Who it is for:

Accredited investors and institutions seeking the deepest DeFi integration of any tokenized Treasury product. The $5,000 minimum on Ethereum is accessible relative to BUIDL’s $5 million, and the 24/7 instant minting and redemption via USDC makes it operationally clean. The DeFi leverage capabilities via Flux Finance are unavailable in any competing product.

DeFi integration status: The most DeFi-integrated tokenized Treasury in the market. Flux Finance collateral, stablecoin backing, multi-protocol lending integration.

5. Franklin Templeton BENJI / FOBXX — the broadest access and longest track record

The headline figures:

• AUM: $1.98 billion (as of April 29, 2026)
• Yield: 3.52% TTM yield (Morningstar data, NAV as of May 1, 2026)
• Minimum investment: $20
• Available on: Stellar (primary), Ethereum, Solana, Base, Aptos, Avalanche, Canton Network, Polygon
• Token mechanics: Stable $1.00 NAV, yield distributed as new tokens daily
• Expense ratio: 0.20%
• Launched: 2021 — the first tokenized Treasury product of any kind
• US persons: Yes (US-registered mutual fund, accessible via Benji app)
• P2P transfers: Available to retail holders since May 2025

What it is:

The Franklin OnChain US Government Money Fund (FOBXX), represented by the BENJI token, is the oldest tokenized Treasury product in existence and the only one structured as a US-registered mutual fund — meaning it is accessible to US persons, unlike every other product in this comparison.

Franklin Templeton launched BENJI in 2021 on the Stellar network, when tokenization was not yet on mainstream institutional radars. Five years later, BENJI has grown to $1.98 billion in AUM, with the number of BENJI investors growing by more than 140% from April 2024 to March 2026. Cumulative P2P transfer volume has surpassed $211 million.

The May 2025 expansion of P2P transfer functionality to retail holders was a watershed moment for mass-market access. For the first time, a retail investor could hold BENJI tokens and transfer them peer-to-peer on a public blockchain — the functionality that distinguishes on-chain products from their TradFi equivalents — at the $20 minimum investment level.

BENJI’s proprietary “Intraday Yield” feature enables proportional calculation and distribution of yield down to the second when a BENJI token is transferred. This means an investor can own a BENJI token for part of the day, transfer it to another investor, and still earn yield for the period they held it — a level of yield precision that traditional money market funds cannot match.

The chain strategy:

Stellar functions as the primary blockchain for FOBXX — the network where the official fund record is maintained. This is significant: FOBXX is the first and only US-registered mutual fund to use a public blockchain as the official system of record for processing transactions and recording share ownership. Stellar, not Ethereum, is the canonical chain for the fund’s legal ownership records. The BENJI token is also now the second-largest tokenized RWA on Stellar by value, representing over $650 million as of April 2026.

The multi-chain expansion (Base, Aptos, Avalanche, Solana, Canton Network, Polygon in addition to Stellar) provides accessibility across DeFi ecosystems, though the institutional Canton Network expansion — serving clients including HSBC, BNP Paribas, JPMorganChase, and Citadel Securities — signals BENJI’s institutional ambitions alongside its retail accessibility.

Who it is for:

The most accessible product in the comparison. $20 minimum, US persons eligible, accessible via the Benji app on iOS and Android. For retail investors in the United States who want Treasury-rate yield in a blockchain-native format — this is the only product that serves them. For global retail investors, BENJI competes with USDY on accessibility with the advantage of US-person eligibility and multi-year track record.

DeFi integration status: Growing, but less DeFi-native than OUSG or BUIDL. P2P transfers are live. Canton Network deployment serves institutional DeFi. Retail DeFi composability is limited compared to OUSG.

The master comparison table

The decision framework: which product fits your situation

The matrix above tells you what each product is. This section tells you which to choose.

If you are an institutional treasury manager or DeFi fund with $5M+ and need the most liquid, most credible, and most DeFi-integrable product: BUIDL. The BlackRock brand, the Binance collateral integration, the UniswapX trading, and the $2.45B scale make it the benchmark. Accept the $5M minimum as the price of institutional-grade credibility and the deepest secondary market.

If you are a crypto trading desk or DeFi protocol treasurer needing yield-bearing collateral that converts seamlessly to USDC: USYC. Circle’s single-API USYC-to-USDC integration is the cleanest operational solution for institutions managing trading workflows. Near-instant USDC redemption and the rising-price model simplify accounting. The $100K minimum is manageable at institutional scale.

If you are a DeFi-native investor or small institution wanting the deepest protocol integration and leverage capabilities, with $5,000+ available: OUSG. The Flux Finance lending integration, the fee waiver through July 2026, and the broadest DeFi composability make OUSG the choice for on-chain capital maximisers. The 24/7 instant minting and redemption via USDC is operationally superior to most competing products.

If you are a global retail investor outside the United States seeking the most accessible Treasury yield on multiple chains: USDY. The retail-accessible minimum, the 3.55% APY, and the 8+ chain availability make USDY the mass-market product. Respect the 40-day holding period — this is not a trading vehicle.

If you are a US-based retail investor who wants any on-chain Treasury yield at all: BENJI / FOBXX. It is the only product in this comparison available to US persons at the retail level. The $20 minimum, the Benji app, and the five-year track record make it the default choice for US retail exposure to tokenized Treasuries.

The risk framework: what can go wrong

Every product in this comparison is backed by actual US government debt managed by regulated institutional custodians. The credit risk of the underlying holdings is essentially zero — these are the same T-bills that the US government uses to fund its deficit and that money market funds hold as the safest available liquid investment.

But the credit risk of the underlying is not the only risk.

Smart contract risk. The tokens exist on blockchains. The smart contracts governing minting, redemption, and yield distribution can theoretically contain bugs. BUIDL, USYC, OUSG, USDY, and BENJI have all undergone independent smart contract audits. The risk is not zero, but it is low for audited, battle-tested contracts. New integrations — like BUIDL’s UniswapX integration or OUSG’s Flux Finance composability — introduce new smart contract surface area with each deployment.

Redemption friction and liquidity risk. BUIDL’s $250,000 minimum redemption and monthly dividend cycle mean large investors cannot exit in arbitrary sizes at arbitrary times. USYC’s near-instant redemption is contingent on available instant-redemption capacity. OUSG’s 24/7 USDC redemption is operationally the cleanest, but all products have some form of redemption constraint under stressed conditions.

Regulatory risk. The tokenised Treasury space operates at the intersection of securities law, blockchain regulation, and cross-border capital flows. MiCA in the EU, the evolving US regulatory posture, and jurisdiction-specific restrictions (US persons barred from most products, certain emerging markets restricted on others) all create potential for regulatory change affecting product availability. The transitional period for MiCA-covered platforms ends July 1, 2026, with implications for EU distribution of some products.

Oracle and counterparty risk. Products that use Chainlink or other oracle networks to relay yield and price data introduce oracle risk. If an oracle is compromised, the on-chain representation of the token’s value could temporarily diverge from the actual fund NAV. Established oracle providers like Chainlink have strong track records but are not infallible.

The interest rate sensitivity. These products earn the short-duration US Treasury rate. When the Fed cuts rates — as is expected at some point in 2026-2027 — yields will decline. The 3.5–4% APY currently on offer reflects the prevailing rate environment. If rates fall to 2%, the yield advantage over zero-yield stablecoins compresses by nearly half. The products do not lose capital — they just earn less.

How to access tokenized Treasuries through crypto exchanges

For traders and investors who access the crypto market primarily through centralised exchanges, the on-ramp to tokenized Treasuries is becoming more direct.

Bybit: Bybit has integrated RWA products and is expanding on-chain yield offerings accessible from the Bybit interface. Watch for expanding OUSG and BUIDL integration across Bybit’s earn ecosystem.

OKX: OKX is among the most progressive centralised exchanges for on-chain RWA integration. OKX’s Agent Trade Kit and multi-chain infrastructure position it as a natural interface for tokenized Treasury products as the sector matures.

Binance: BUIDL is accepted as off-exchange collateral on Binance, making Binance one of the first major exchanges to formally integrate a tokenized Treasury product into its trading collateral framework. This is operationally significant for institutional Binance users who previously needed to hold non-yielding USDC as trading margin.

For direct on-chain access without exchange intermediation, OUSG mints through the Ondo Finance platform with USDC. BENJI is accessible through the Benji Investments app. BUIDL requires Securitize onboarding. USYC onboards through the Circle USYC platform. The custody and compliance infrastructure for each product is specific to the issuer and requires completing their individual KYC/AML process.

For any significant position, storing tokenized Treasury tokens in a self-custodied hardware wallet is the same recommendation that applies to any on-chain asset. A Ledger Nano X or Ledger Flex supports the ERC-20 and SPL tokens used by BUIDL, USYC, OUSG, USDY, and BENJI.

The long view: where this market goes

The total tokenized Treasury market has grown from approximately $1 billion in early 2023 to over $10 billion by early 2026. At the current 18% thirty-day growth rate that RWA.xyz was tracking in Q1 2026, the sector could exceed $25 billion by Q3 2026. That rate will slow, but the institutional infrastructure being built — DTCC Canton deployment, BlackRock’s UniswapX integration, Circle’s stablecoin-adjacent USYC model — suggests the structural drivers of growth are not temporary.

The long-term trajectory points toward a world where the distinction between “holding cash” and “earning Treasury yield on idle capital” disappears for any participant operating on-chain. The marginal cost of deploying idle stablecoin capital into a tokenized Treasury is approaching zero as integration deepens. When that deployment is automatic, instantaneous, and costless, the $28 trillion traditional Treasury market and the multi-trillion stablecoin market will increasingly overlap — with tokenized Treasury products as the bridge.

The 3.5% yields available now are a function of the current interest rate environment. They will compress as rates fall. But the structural advantage — yield-bearing, DeFi-composable, 24/7 liquid, on-chain verifiable exposure to the world’s safest asset — is permanent. The operational efficiency of holding BUIDL or OUSG over non-yielding USDC does not diminish when rates are at 1% any more than it does at 4%.

This is not a trade. It is infrastructure.

Frequently asked questions

Are tokenized Treasuries safe?

The underlying credit quality — US government debt — is the benchmark safe asset in global finance. The additional risk layers are smart contract risk, redemption liquidity risk, and regulatory risk, all of which are manageable with appropriate product selection and position sizing. For the yield premium over zero-yield stablecoins, the risk-adjusted profile of established products like BUIDL, BENJI, and OUSG is compelling.

How do I earn yield automatically?

Yield accrues daily without any action required from the holder. Rebasing products (BUIDL, BENJI) add new tokens to your wallet balance daily or monthly. Rising price products (USYC, USDY) show an increasing token price each day. You do not need to stake, claim, or take any action to receive the yield.

What is the tax treatment?

Tokenized Treasury yield is generally treated as interest income in most jurisdictions — the same tax treatment as traditional money market fund distributions. The specific treatment varies by jurisdiction, and tokenization adds potential complexity around the timing of recognition for rebasing tokens versus rising-price tokens. Consult a tax professional for your specific situation and jurisdiction before investing.

Can I use these in DeFi?

Yes, with variation by product. OUSG has the deepest DeFi integration (Flux Finance, multiple lending protocols). BUIDL integrates with UniswapX and serves as Binance collateral. USYC supports exchange and lending collateral use. USDY is used across 8+ chains for payments, savings, and collateral. BENJI’s DeFi composability is growing but more limited than OUSG or BUIDL currently.

This article is for informational purposes only and does not constitute financial or investment advice. Yield figures are accurate as of the research date of May 2026 and will change as interest rates and market conditions evolve. All products carry smart contract, regulatory, and liquidity risk. Eligibility restrictions apply to each product — verify your jurisdiction and investor accreditation status before investing. Data sourced from RWA.xyz, rwa.xyz analytics, Morningstar, Arkham Research, FinanceFeeds, and individual product documentation.

Affiliate disclosure: Decentralised News maintains affiliate relationships with Bybit, OKX, Binance, and Ledger. Links in this article are affiliate links. This does not influence the editorial content or product assessments.

Published by Decentralised News | Author: Heath Muchena | May 2026

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