BlackRock and Franklin Templeton race to dominate on-chain Treasuries as tokenized real-world assets cross $30 billion

Institutional money-market funds issued as blockchain tokens have grown from under $5 billion at the start of 2024 to more than $30 billion by mid-2026, with BlackRock's BUIDL and Franklin Templeton's FOBXX capturing the largest share of a market that now includes private credit, commodities, and real estate . ^[2] ^[3]

In March 2024, BlackRock launched a tokenized Treasury fund on the Ethereum blockchain in partnership with Securitize and captured over $240 million in its first week, a milestone that validated the thesis that institutional capital would flow into real-world asset infrastructure at a pace few had predicted a year earlier . By the end of April that year, BlackRock's USD Institutional Digital Liquidity Fund—known as BUIDL—had overtaken Franklin Templeton's Franklin OnChain US Government Money Fund, or FOBXX, to become the world's largest tokenized equity fund, with $375 million in assets under management as of April 30, according to data from Dune Analytics . The gap widened to $8 million within days, and the race between the two asset managers signaled that tokenized Treasuries had moved from proof-of-concept to live competition for institutional deposits . ^[4] ^[5] ^[6] ^[7] ^[8]

Two years later, the tokenized real-world asset market—excluding stablecoins—has grown to between $31 billion and $36 billion, depending on the tracker, up from roughly $18 billion to $26 billion in 2025 and under $5 billion at the start of 2024 . Tokenized Treasuries and money-market funds account for the largest share, followed by private credit, commodities such as gold, and a harder-to-measure segment of real estate and other asset-backed securities . Boston Consulting Group projects the tokenized asset market could reach $16 trillion by 2030, a forecast that assumes regulatory clarity, custody infrastructure, and institutional adoption all continue to advance . For retail investors, the question is no longer whether tokenization will happen, but which publicly traded companies stand to capture revenue from the infrastructure, issuance platforms, and custody services that underpin the shift . ^[1] ^[3] ^[2] ^[9] ^[10] ^[11] ^[12] ^[13]

The wrapper model: how Franklin Templeton and BlackRock put Treasuries on-chain

Franklin Templeton's FOBXX was the first U.S.-registered mutual fund to use a public blockchain as its official system of record for share ownership, a structural choice that distinguishes it from funds that maintain traditional off-chain ledgers and use tokens only as a secondary reference . A tokenized fund is a regulated investment fund whose shares are represented as blockchain tokens, enabling on-chain record-keeping and transfer in place of traditional paper-based or centralized ledger systems . The fund issues one BENJI token for each share, and investors access it through the Benji Investments mobile app or the Benji Institutional web portal, depending on their investor type and preferred blockchain . As of 31 March 2026, FOBXX held $374 million in total net assets, ranking it as the third-largest tokenized money-market fund globally . ^[14] ^[15] ^[16] ^[17] ^[18]

BlackRock's BUIDL, launched in partnership with Securitize in March 2024, captured over $240 million in its first week and has since become the largest tokenized Treasury fund by assets under management . The fund's rapid growth was bolstered by a $95 million transfer from Ondo Finance, a digital-asset firm that itself issues tokenized yield products . Both FOBXX and BUIDL invest in U.S. government securities and repurchase agreements, offering yields that track short-term Treasury rates while allowing holders to transfer shares on-chain without the multi-day settlement cycles of traditional money-market funds . ^[4] ^[5] ^[19] ^[20]

The Securities and Exchange Commission issued a joint staff statement on 28 January 2026 confirming that tokenized securities—whether issued directly by an issuer or wrapped by a third party—remain subject to the same federal securities laws as their traditional counterparts . The statement distinguished between issuer-sponsored tokenized securities, in which the blockchain record is the official master securityholder file, and third-party tokenized securities, in which a separate entity wraps an existing security and issues a derivative token . In the latter case, the token holder receives the economic returns of the underlying security but not an ownership interest, and faces additional risks from the third-party issuer, such as bankruptcy exposure . The SEC emphasized that the format in which a security is issued or the method of recordkeeping—whether on-chain or off-chain—does not alter its legal status or the applicability of disclosure, custody, and suitability rules . ^[21] ^[22] ^[23] ^[24] ^[25] ^[26] ^[27] ^[28]

To accomplish issuer-sponsored tokenization, the issuer or its agent integrates distributed ledger technology into the systems that it uses to record owners of the security, such that a transfer of the crypto asset on the crypto network results in a transfer of the security on the master securityholder file . Consequently, the only difference between a security issued in this manner and securities issued in traditional format is that instead of maintaining the master securityholder file through conventional, offchain database records, the issuer or its agent maintains the master securityholder file on one or more crypto networks, which functionally are onchain database records . A single class of securities could be issued in multiple formats, including tokenized format, and an issuer may permit security holders to hold a security in different formats and convert the security from one format to another . ^[29] ^[30] ^[31] ^[32]

As reported · As of 2026-08-25 · AI-generated supporting motif; facts and labels are sourced separately.

Private credit and commodities: the second wave of tokenized real-world assets

Beyond Treasuries, private credit has emerged as the second-largest category of tokenized real-world assets, with platforms such as Maple, Centrifuge, and Goldfinch originating loans and issuing tokens that represent claims on the underlying credit pools . Maple has originated more than $4 billion in loans, and Apollo's ACRED fund holds approximately $125 million in tokenized private credit . These platforms allow institutional and accredited investors to access private credit markets with lower minimum investment thresholds and faster settlement than traditional syndicated loans, though the tokens remain permissioned and subject to know-your-customer and accredited-investor requirements . ^[36] ^[9] ^[37]

Tokenized gold represents another established segment, with Tether's XAUT and Paxos's PAXG holding more than 96 percent of the market for on-chain gold-backed tokens, totaling roughly $1.5 billion in assets . Real-world asset tokens are blockchain representations of offchain financial instruments, Treasury bills, private credit loans, real estate equity, gold bars, public equities, and retired carbon credits . Real estate remains the hardest segment to measure, because most tokenized real estate offerings are structured as special-purpose vehicle interests rather than direct property ownership, and the tokens often split across multiple regulatory categories depending on the jurisdiction and the rights conveyed . ^[10] ^[38] ^[11]

The total value locked in tokenized real-world assets—excluding stablecoins—reached approximately $31 billion to $36 billion by mid-2026, according to trackers such as RWA.xyz and Chainalysis-based analyses . Stablecoins, which are a separate $290 billion to $321 billion market dominated by Tether's USDT at approximately $184 billion to $190 billion and Circle's USDC at approximately $73 billion, are excluded from these figures to avoid double-counting, a methodology also used by McKinsey in its market-sizing reports . Claims of a $60 billion-plus tokenized asset market include broader definitions that, by the same analysis, show 56 percent of assets sitting idle rather than actively deployed in decentralized finance protocols or secondary trading . ^[1] ^[3] ^[39] ^[40]

The contrast between lending and fund tokenization is clearest when examining the role of asset origination: more than $20 billion in loans now run through platforms like Figure and Maple, where sourcing and judging the loan is the real work, while for Treasuries the originator is just the asset manager tokenizing a fund it already runs . The businesses that last here are the ones whose underwriting is hard and whose deal flow is proprietary . Of the six layers in the tokenization stack—asset origination, legal structuring, issuance, compliance, data and oracles, and distribution—asset origination is the one whose moat comes from judgment rather than technology . ^[41] ^[42] ^[43] ^[44]

Listed companies with direct exposure to tokenization infrastructure

BlackRock, the world's largest asset manager with $10.68 trillion in assets under management as of 31 March 2026, derives revenue from management fees on BUIDL and other tokenized funds, though the segment remains a small fraction of the firm's total fee income . Franklin Templeton, with $1.68 trillion in assets under management, has positioned FOBXX as a flagship product for its digital-asset strategy, and the fund's multi-chain deployment across eight blockchains reflects the firm's bet that interoperability will drive institutional adoption . WisdomTree, which offers the WTGXX tokenized Treasury fund, has a smaller asset base but has made tokenization a core part of its growth strategy, targeting both institutional and retail investors through its digital wallet and exchange infrastructure . ^[33] ^[45] ^[36]

Securitize, the platform that partnered with BlackRock to launch BUIDL, provides issuance, transfer-agent, and compliance services for tokenized securities . Tokeny offers white-label infrastructure for issuers seeking to tokenize bonds, funds, and private equity, and its ecosystem map identifies the significant players across distributors, decentralized finance protocols, custodians and wallets, tokenization platforms, data providers, and blockchain networks . Chainlink, a publicly traded oracle network, provides data feeds that connect off-chain asset prices to on-chain smart contracts, a service that is essential for tokenized commodities and real estate, where valuations depend on external market data . ^[4] ^[46] ^[47] ^[48] ^[49]

ADDX, a Singapore-based platform, grants fractional access to top-tier private markets that traditionally are only available for the wealthy via blockchain . Dev Technosys has built tokenization platforms for real estate, invoice financing, and commodity assets covering the full tokenization stack from asset onboarding to secondary market infrastructure . Companies like Suffescom, Tokeny, Securitize, and Chainlink are driving innovation across the RWA ecosystem, building secure, compliant, and scalable blockchain solutions for asset digitization . ^[50] ^[51] ^[49] ^[52]

Advanced technologies like AI compliance, cross-chain interoperability, and smart contracts are shaping the future of tokenized assets . Regulatory compliance, asset verification, and secure custody remain key factors for successful RWA adoption . By 2026, the RWA tokenization industry will have developed considerably, with BlackRock's tokenized treasury fund crossing $1 billion in assets in under two months after its March 2024 launch . ^[53] ^[54] ^[55] ^[56]

USD million · As of 2026-08-25 · AI-generated supporting motif; facts and labels are sourced separately.

Yield, liquidity, and the custody question for retail holders

Tokenized Treasury funds such as BUIDL and FOBXX offer yields that track short-term Treasury rates, and holders can transfer shares on-chain without waiting for the settlement cycles that apply to traditional money-market funds . Treasuries are a gateway for tokenization efforts as a low-risk, well-known instrument where investors can park their on-chain cash and earn stable yield without leaving the blockchain ecosystem . However, liquidity in the secondary market for tokenized fund shares remains limited compared to traditional funds, because the tokens are permissioned and can be transferred only to wallets that have completed know-your-customer verification . ^[20] ^[37]

Custody of tokenized securities presents a distinct challenge for retail investors, because the tokens must be held in wallets that support the specific blockchain and token standard used by the issuer . Franklin Templeton's BENJI tokens are issued on eight blockchains, and investors must use the Benji Investments app or a compatible institutional portal to hold and transfer the tokens . BlackRock's BUIDL is issued on Ethereum and requires institutional custody arrangements . ^[17] ^[45] ^[7]

The SEC's custody rule for registered investment advisers requires that client assets be held by a qualified custodian, and the rule applies to tokenized securities in the same way it applies to traditional securities . Tokenized securities must still adhere to disclosure rules, custody requirements, and suitability standards—regardless of the technology used to issue or transfer them . Tokenized securities held by access persons should be evaluated under the firm's Code of Ethics, including applicable reportable security and reportable account requirements . Marketing materials related to tokenized products remain subject to the SEC Marketing Rule, with heightened expectations around accuracy, fair presentation, and risk disclosures . ^[58] ^[59] ^[60] ^[61]

SEC Commissioner Hester Peirce emphasized in mid-2025 that blockchain "does not magically transform" a security into something exempt from regulatory requirements . The message coming from regulators is unambiguous: tokenized securities are still securities, and the compliance expectations for registered investment advisers are evolving rapidly to keep pace . ^[62] ^[63]

The regulatory hinge: clarity versus technological risk

The Commodity Futures Trading Commission and the SEC issued joint guidance in April 2026 classifying crypto assets into five categories: digital commodities such as Bitcoin and Ethereum; digital collectibles including non-fungible tokens and meme coins; digital tools purchased for use; stablecoins; and digital securities, which are tokens representing traditional securities and investment contracts . The key takeaway from the joint guidance is that most crypto assets are not securities, and the legal treatment of digital assets is determined by economic reality rather than technology . While distributed ledger technology and tokenized assets can facilitate more efficient, transparent, and cost-effective transactions than traditional methods, increased tokenization activity makes strict compliance with applicable legal and regulatory requirements essential . ^[64] ^[65] ^[66] ^[67]

The SEC's January 2026 statement did not establish new rules or exemptions for tokenized securities, but it clarified that the technological format in which a security is issued does not create a new regulatory category . A tokenized security is subject to the same registration, disclosure, and reporting requirements under the Securities Act of 1933 and the Securities Exchange Act of 1934 as any other security . The statement is part of the SEC's broader effort to provide clarity regarding how existing securities law frameworks apply to digital assets and distributed ledger technology . ^[68] ^[28] ^[69] ^[70]

The wrapper model—in which a third party issues a token that references an existing security but does not convey direct ownership—introduces additional risks that the SEC highlighted in its statement . Holders of synthetic tokenized securities, including linked securities and security-based swaps formatted as crypto assets, receive the economic returns of the underlying security but not an ownership interest, and face bankruptcy exposure from the third-party issuer that holders of the underlying security would not encounter . ^[71] ^[72] ^[26]

The strongest competing interpretation is that the observed growth in tokenized assets is driven primarily by the broader rise in Treasury yields since 2022, rather than by the technological advantages of blockchain-based settlement . Under this view, institutional investors would have allocated capital to money-market funds regardless of whether the shares were issued on-chain or off-chain, and the tokenization layer adds complexity without delivering material cost savings or liquidity improvements . The timing of BlackRock's BUIDL launch in March 2024, however, coincided with a period when the fund captured over $240 million in its first week, and the fund's rapid asset growth suggests that institutional demand for on-chain settlement and programmable compliance features was a distinct driver . ^[20] ^[4] ^[5] ^[6]

The infrastructure layer: where value accrues in tokenization

Bringing a real-world asset on-chain takes six steps, from sourcing the asset to getting the token into a buyer's hands, and each step is its own business with its own economics . Asset origination and underwriting remain the part blockchain changes least, since deciding whether an asset is sound takes human judgment and is not something you can program into a smart contract . If tokenization is mainly an infrastructure shift, the question for an investor is which parts of that infrastructure are hard to copy and which get competed away . ^[73] ^[74] ^[75]

Tokenized US Treasuries are funds and notes that hold short-term US government debt and issue their shares or claims as digital securities on a blockchain—the token wraps a regulated fund share or a note, not the Treasury itself . The market reached approximately $10.8 billion in distributed value across 82 products as of June 10, 2026, after crossing $10 billion for the first time in February 2026 . That makes tokenized Treasuries the largest single category of tokenized real-world assets and the de facto cash-management layer of on-chain finance . ^[76] ^[77] ^[78]

Building RWA infrastructure is not a standard blockchain development project . It requires deep expertise in securities law, custody arrangements, oracle data feeds for off-chain asset pricing, and the technical standards that institutional counterparties recognize . Traditional asset investments have always faced various forms of inefficiency: paper-heavy processes, high minimum investment requirements, poor liquidity of the secondary market, and prolonged settlement times that span from days to weeks . RWA tokenization is breaking down these obstacles by turning physical and financial assets, real estate, commodity assets, bonds, and private equity into blockchain-enabled tokens, thus facilitating partial ownership, immediate settlement, and non-stop global trading . ^[79] ^[80] ^[81] ^[82]

What determines the next turn

The tokenized real-world asset market has grown from a niche experiment to a $30 billion-plus segment in less than three years, driven by institutional demand for on-chain Treasury funds, private credit, and commodities . BlackRock's BUIDL and Franklin Templeton's FOBXX have captured the largest share of the tokenized Treasury market, and both firms have positioned tokenization as a core part of their digital-asset strategies . For retail investors, the question is whether the infrastructure—custody, compliance, and secondary-market liquidity—will develop quickly enough to support broader adoption, or whether tokenized securities will remain a product for institutional and accredited investors who can meet the know-your-customer and qualified-custodian requirements . ^[1] ^[3] ^[7] ^[18] ^[37] ^[60]

The SEC's January 2026 statement provided regulatory clarity by confirming that tokenized securities are subject to the same federal securities laws as traditional securities, but it did not resolve the custody and technological risks that limit retail access . Boston Consulting Group's projection that the tokenized asset market could reach $16 trillion by 2030 assumes that these risks will be addressed through improved custody infrastructure, standardized token formats, and regulatory frameworks that accommodate both on-chain and off-chain recordkeeping . Whether that projection proves accurate depends on the pace at which listed companies such as BlackRock, Franklin Templeton, and WisdomTree build the infrastructure to support retail participation . ^[22] ^[68] ^[12] ^[58] ^[59]

The race between BlackRock and Franklin Templeton for dominance in tokenized Treasuries is not just a competition for assets under management; it is