Tokenized US Treasury Market Surges Past Early Estimates

The tokenized US Treasury market has grown significantly in recent times, with BlackRock's BUIDL and Franklin Templeton's BENJI leading the way. BUIDL, launched on March 20, 2024, via Ethereum, has claimed approximately 40% of the entire on-chain tokenized Treasury market, with a total asset value of roughly $2.7B.

BENJI, which was launched on April 6, 2021, as a fully regulated on-chain mutual fund from Franklin Templeton, offers accessibility through its low minimum investment threshold of just $20. This is in contrast to BUIDL's $5M threshold that limits participation to qualified US purchasers.

The two products function as rebasing tokens, maintaining a stable net asset value of $1.00 per token. Yield gets distributed through periodic token minting rather than price appreciation. On yield, the two are closely matched, with BUIDL offering a 7-day annualized percentage yield of 3.42%, while BENJI edges ahead at 3.55%.