BUIDL and BENJI lead tokenized US Treasury bill growth as market balloons past early estimates
RWA Signal Insight
U.S. TreasuriesBlackRock’s BUIDL and Franklin Templeton’s BENJI have recorded the largest market cap gains among tokenized U.S. Treasury products, signaling a significant shift in fixed-income investing. BUIDL, launched on Ethereum in March 2024, has reached approximately $2.7 billion in total asset value and now commands roughly 40% of the on-chain Treasury market. Meanwhile, Franklin Templeton’s BENJI, which launched in 2021, holds about $727 million in assets and offers a lower barrier to entry for retail investors. Both products utilize rebasing tokens to maintain a stable $1.00 net asset value while distributing yield through periodic token minting. These assets provide key advantages over traditional bond markets, including 24/7 settlement and fractional ownership capabilities. With yields currently ranging between 3.42% and 3.55%, these products are increasingly positioned as competitive alternatives to non-yielding stablecoins. The rapid growth of these funds reflects a broader trend of traditional finance institutions migrating assets on-chain to enhance accessibility and efficiency. This expansion contributes to a tokenized Treasury market projected to reach between $10 billion and $17 billion by mid-2026.
Key points
- BlackRock's BUIDL reached $2.7 billion in total asset value on Ethereum.
- Franklin Templeton's BENJI offers a $20 minimum investment compared to BUIDL's $5 million.
- Tokenized Treasury market is projected to grow to $10 billion–$17 billion by mid-2026.
- BENJI and BUIDL provide 24/7 settlement and yields exceeding 3.4%.
Background
BlackRock's BUIDL and Franklin Templeton's BENJI are tokenized investment vehicles that represent ownership in U.S. Treasury-backed funds on public blockchains. By utilizing smart contracts, these products allow for the fractionalization of traditional debt instruments, enabling investors to hold assets that track short-term government interest rates. They function as rebasing tokens, where the supply of tokens in a wallet increases to reflect accrued interest while maintaining a stable price per token.