Tokenized treasuries | Institutional Cash Management, Settled Onchain
U.S. Treasuries
Tokenized treasury funds represent a shift in institutional cash management by moving traditional government paper and money market fund shares onto blockchain ledgers. By replacing legacy transfer agent records with onchain tokens, treasurers gain the ability to move, pledge, or redeploy assets continuously rather than waiting for traditional settlement cycles. The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) serves as a primary example of this evolution, having expanded to Avalanche, Aptos, Arbitrum, Optimism, and Polygon by November 2024. As of mid-July 2026, Avalanche held approximately $900 million of BUIDL, representing a significant portion of the fund's $2.9 billion total value. This transition relies on blockchain networks that offer sub-second finality, 24/7 availability, and protocol-level compliance controls to satisfy institutional requirements. BlackRock’s subsequent SEC filings in May 2026 for additional tokenized cash products indicate that this model is scaling beyond initial flagship offerings. Ultimately, these tokenized instruments maintain the same regulatory and custodial frameworks as traditional funds while significantly improving operational liquidity and distribution efficiency. The integration of EVM-compatible infrastructure ensures that existing institutional custody and audit tools remain functional within this new digital environment.
Key points
- ▸BlackRock's BUIDL fund reached $2.9 billion in total value by mid-July 2026.
- ▸Avalanche held $900 million of BUIDL assets as of mid-July 2026.
- ▸BUIDL expanded to Avalanche, Aptos, Arbitrum, Optimism, and Polygon in November 2024.
- ▸BlackRock filed for two additional tokenized cash products with the SEC in May 2026.
Background
Tokenized treasuries are digital representations of shares in funds that hold short-term government debt, such as T-bills and repo agreements. These assets function by recording ownership on a blockchain, allowing for near-instantaneous settlement and continuous liquidity compared to traditional T+1 or T+2 settlement cycles. They are designed to integrate with existing institutional compliance, custody, and audit standards.
Relevance
9/10