BlackRock BUIDL vs Franklin BENJI vs Ondo USDY vs Mountain USDM: the institutional tokenized treasury comparison in 2026.

A tokenized treasury fund is a regulated investment product (money market fund, fund interest, or yield-bearing stablecoin) that holds short-term US government securities, with ownership represented as transferable tokens on a public blockchain. The underlying economics are nearly identical across all four products covered here: short-term US Treasury bills earning the prevailing Treasury rate (roughly 4.5-5.0% in mid-2026), net of management fees, distributed to token holders through one of three mechanics (new token minting, token rebasing, or price appreciation).

The differences are not in the underlying asset. The differences are in the regulatory wrapper (SEC-registered money market fund, BVI fund, Bermuda-domiciled fund, Bermuda-domiciled stablecoin issuer), the investor accreditation regime (US qualified purchaser, US retail, non-US accredited, non-US retail), the chain footprint, the operational mechanics (daily rebasing, dividend reinvestment, price accrual), and the fee structure.

This matters because the same dollar of Treasury exposure can sit in BUIDL ($5M minimum, institutional, BlackRock + Securitize stack), BENJI ($20 minimum, SEC-registered, retail accessible), USDY (non-US accredited, multi-chain portable), or USDM (non-US accredited, rebasing stablecoin format) with materially different operational and tax characteristics. The buyer's situation determines which wrapper fits; the underlying yield is essentially the same.

For the broader category context (where tokenized treasuries fit in the overall RWA landscape), see the 12 RWAs that work, 5 that don't guide. For the comparison with real-estate-backed tokenization, see the tokenization vs REITs guide.

One row per product across the dimensions that drive selection. All AUM and fee figures are issuer self-reported or rwa.xyz-tracked as of mid-2026 and move materially with market conditions and product updates; verify directly with each issuer for any commercial decision.

Three patterns from the matrix that are easy to miss.

The four are not direct competitors. They occupy different access tiers. BUIDL is US institutional only (and itself BlackRock's institutional-grade product). BENJI is the US retail and traditional broker-dealer channel. USDY is the non-US retail and DeFi-native channel. USDM is the non-US accredited and yield-farming-native channel. The buyer choice is determined by jurisdiction and access first, not by yield differentials.

BUIDL's BVI domicile matters for US qualified purchasers specifically. Despite the BlackRock name, BUIDL is not a US-registered '40 Act fund (BENJI is). The BVI fund structure gives BlackRock operational flexibility around tokenization mechanics that a US-registered fund would have more difficulty implementing in 2024-2026. The trade-off is that BUIDL is restricted to qualified purchasers because the BVI structure cannot be marketed to general US retail.

Chain footprint signals different strategy. BENJI on Stellar (a chain optimised for low-cost payment-style transactions) reflects Franklin's retail accessibility focus. BUIDL on Ethereum (institutional DeFi center of gravity) reflects BlackRock's institutional positioning. USDY spreading across many chains (Ethereum, Solana, Sui, Aptos, Mantle, Cosmos, Noble) reflects Ondo's cross-chain DeFi distribution strategy. USDM on EVM L2s (Optimism, Arbitrum, Base) reflects Mountain's yield-farming-native targeting. The chain choice is product-strategic, not arbitrary.

What BUIDL actually is. A tokenized money market fund where the legal vehicle is a BVI-domiciled fund and the technology stack is provided by Securitize (the SEC-registered transfer agent and broker-dealer). Investors subscribe through Securitize, which holds the cap table as transfer agent. Tokens represent fund interests; one BUIDL token equals one dollar of fund interest. The fund holds cash, US Treasury bills, and overnight repurchase agreements managed by BlackRock's institutional fixed-income team.

The yield distribution mechanic. BUIDL distributes daily yield by minting new tokens directly to holder wallets. This is unusual compared with traditional money market funds (which accrue yield in the share NAV) and is one of the operational benefits of the tokenized structure: dividends arrive in real time as new wallet balance rather than after settlement delay.

Who is in BUIDL. BUIDL became the largest tokenized treasury product within months of launch (passing $500M by mid-2024 and growing materially since) because of three flywheels. First, Ondo Finance allocated USDY's underlying treasury exposure heavily into BUIDL, making Ondo one of the largest BUIDL holders. Second, MakerDAO (now operating as Sky) allocated significant collateral capacity to BUIDL through its real-world asset allocation framework. Third, on-chain DeFi treasuries (Aave, others) added BUIDL as a treasury asset. The institutional cap table is concentrated and visible on chain.

What BUIDL is genuinely good at. Institutional on-chain treasury exposure where the buyer values the BlackRock brand and Securitize regulated stack, and where the $5M minimum is not the binding constraint. DeFi protocols allocating reserves on-chain. Family offices wanting tokenized treasury exposure with the largest issuer signal.

Where it gets harder. The $5M minimum cleanly excludes most accredited investors below the family-office band. The qualified-purchaser-only structure means it cannot be marketed to general US retail. For US retail wanting tokenized treasury exposure specifically, BENJI is the only direct option (covered next).

For the broader question of which tokenization platforms power these products, see the platforms comparison guide (Securitize is the BUIDL stack provider).

The historic significance. Franklin Templeton launched the on-chain share class of FOBXX in 2021, making it the first SEC-registered money market fund with a publicly-traded blockchain share class. The product predates BUIDL by three years and established the regulatory pattern (SEC-registered '40 Act fund with on-chain share class via a regulated transfer agent) that later tokenized money market funds have followed or differentiated from.

The Stellar-first chain choice. Stellar is a payment-oriented blockchain with very low transaction costs, designed for retail-scale operations rather than institutional DeFi composability. Franklin chose Stellar as the launch chain because the BENJI product is aimed at retail accessibility through the Franklin Benji mobile app, not at integration with Ethereum-based DeFi protocols. The Stellar choice signals retail-first; the BUIDL choice of Ethereum signals institutional-first.

Subsequent expansion to Polygon, Solana, Avalanche, Aptos, and Base reflects Franklin's strategy of making BENJI broadly available across distribution channels, but Stellar remains the primary chain by holder count and operational center of gravity.

What BENJI is genuinely good at. US retail wanting tokenized treasury exposure with the most-mainstream regulatory wrapper (SEC-registered money market fund). Mobile-first retail investors via the Franklin Benji app. Investors who want SEC oversight for their tokenized treasury position rather than offshore fund structures.

Where it gets harder. Less DeFi integration than BUIDL or USDY. The Stellar-first chain choice means BENJI does not natively compose with Ethereum DeFi protocols (it has to bridge through wrapped versions on other chains). For DeFi-native treasury exposure, BENJI is operationally less convenient than BUIDL or USDY. Fee load is the traditional MMF structure, which is slightly higher than BUIDL's scale-driven fee economics.

The non-US positioning. Ondo USDY is structured as a Reg S offering excluded from US persons. The product targets non-US investors who want tokenized US Treasury yield exposure without the qualified-purchaser threshold of BUIDL or the US-only regulatory wrapper of BENJI. The Bermuda Monetary Authority regulatory regime gives Ondo operational flexibility around chain distribution and minimum tickets that a US-registered fund would have more difficulty implementing.

The price-appreciation yield mechanic. Unlike BENJI (rebasing) and BUIDL (new token minting), USDY yields are delivered through token price appreciation. The per-token value grows over time as the underlying portfolio earns yield, similar to a traditional fund NAV mechanism. This makes USDY simpler operationally for some tax purposes (fewer taxable events from rebasing) and more compatible with DeFi protocols that expect a fixed token quantity per address.

The multi-chain reach. USDY has the broadest chain footprint of the four products, spanning Ethereum, Solana, Sui, Aptos, Mantle, Cosmos, Noble, and others through Wormhole and Layer Zero bridge infrastructure. This makes USDY the de facto cross-chain tokenized treasury for non-US DeFi protocols and treasuries that need yield-bearing dollar exposure on chains where BUIDL and BENJI are not natively available.

What USDY is genuinely good at. Non-US accredited and retail investors wanting tokenized treasury exposure with broad chain availability and DeFi composability. DAO treasuries on chains outside the BUIDL footprint. Non-US wealth platforms distributing tokenized treasury yield to clients.

Where it gets harder. Reg S excludes US persons cleanly, so US-anchored buyers cannot use USDY directly. Cross-chain bridging adds operational risk that BUIDL's single-chain BlackRock-Securitize stack does not have. Management fee (in the 0.5% range typically) means net yield is slightly below BUIDL and BENJI for the same gross.

The structural difference. Unlike BUIDL, BENJI, and USDY which are technically fund interests or money market shares, USDM is structured as a yield-bearing stablecoin. The product targets the operational use case of holding dollar-pegged exposure with yield, rather than the institutional treasury-management use case. The Bermuda Monetary Authority regulates Mountain Protocol as a stablecoin issuer rather than as a fund manager.

What this means in practice. USDM rebases daily: holder balances grow each day in proportion to the underlying Treasury yield. This makes USDM operationally similar to AAVE-style yield-bearing tokens or to rebasing stablecoins like the Lido stETH model, rather than to traditional money market fund shares. For DeFi protocols designed around yield-bearing tokens, USDM integrates naturally. For institutional buyers expecting traditional MMF mechanics (separate dividend payments), USDM is a different operational pattern.

The EVM L2 chain choice. USDM is on Ethereum and four major EVM L2s (Polygon, Optimism, Arbitrum, Base). This focuses USDM on the Ethereum-EVM ecosystem rather than the alternative L1s (Solana, Sui, Aptos) that USDY spans. The chain choice reflects Mountain's targeting of yield-farming DeFi users in the EVM ecosystem.

What USDM is genuinely good at. Yield-farming DeFi users wanting a USD-pegged exposure with built-in Treasury yield, particularly on EVM L2s where gas costs are low and protocol composability is high. Non-US wealth wanting dollar exposure with passive yield delivery through the rebasing mechanism.

Where it gets harder. The stablecoin classification may face different regulatory treatment than fund-interest classifications (BUIDL/BENJI/USDY) as global stablecoin regulation evolves. Daily rebasing creates frequent taxable events in some jurisdictions, which can be operationally complex. AUM is materially smaller than BUIDL/BENJI/USDY, which means liquidity in primary issuance is thinner and secondary depth varies by chain.

All four products track short-term US Treasury rates, so gross yields cluster in a narrow band. The differences in net yield to the holder come from fee structures, yield distribution mechanics, and any operational drag from on-chain mechanics (gas costs for rebasing, bridge fees for cross-chain).

Gross yield: clustered by design

In mid-2026 with Treasury yields in the 4.5-5.0% range, all four products deliver gross yields in that band. BUIDL and BENJI track the Fed funds rate most closely because their underlying portfolios are essentially the same as a traditional US Treasury MMF. USDY and USDM may sit slightly below because of the bank demand deposit allocation (USDY) or because of the stablecoin reserve structure (USDM), but the difference is typically less than 25 basis points and moves with portfolio composition.

Fee load and net yield

BUIDL has the lowest fee structure because BlackRock's scale lets it run institutional MMF economics. Net yield typically lands within 10-20 basis points of gross Treasury rate.

BENJI / FOBXX uses traditional MMF fee structures, similar to other Franklin Templeton money market products. Net yield typically lands within 15-30 basis points of gross.

USDY has a management fee in the 0.5% range typically. Net yield lands roughly 40-50 basis points below gross Treasury rate.

USDM fee structure is built into the rebasing rate (Mountain captures the spread between gross Treasury yield and the published rebasing yield). Effective fee load is similar to USDY in the 0.4-0.6% range, with net yield landing roughly 40-60 basis points below gross.

The honest comparison

Across the four products, net yield differences are 20-40 basis points at most. For a $1M position, that is a yield differential of $2,000-$4,000 per year, which is rarely the binding factor in product selection. The selection driver is access, jurisdiction, chain availability, and operational fit, not yield differential.

This is meaningfully different from the tokenized real-asset SPV comparison covered in the tokenization vs REITs guide, where yield differences across products can be 5-15 percentage points reflecting underlying asset differences. Tokenized treasury yields cluster tightly because the underlying asset is essentially uniform US Treasury exposure.

US qualified purchaser (institutional, $5M+ position)

First choice: BUIDL. The qualified-purchaser threshold and $5M minimum cleanly fit this segment. BlackRock brand signal, Securitize regulated stack, and largest institutional cap table. BENJI is the secondary option if SEC-registered money market fund treatment specifically matters (some institutional mandates require '40 Act funds rather than BVI structures).

US accredited (under qualified-purchaser threshold)

First choice: BENJI. Accessible at $20 retail minimum and at institutional levels through traditional channels. SEC-registered money market fund. BUIDL is not accessible to non-qualified-purchaser accredited investors. USDY and USDM are excluded from US persons.

US retail (non-accredited)

Only choice: BENJI. The $20 retail minimum and SEC-registered '40 Act structure make BENJI the only tokenized treasury product directly accessible to US retail investors in 2026. Alternative paths for US retail wanting tokenized treasury exposure: traditional money market funds through standard brokerage (no tokenization wrapper), USDC or USDT (no yield directly, but indirect exposure through interest-bearing stablecoins on regulated platforms), or wait for additional retail-accessible products to launch under evolving US regulation.

Non-US accredited or institutional

First choice: USDY. Reg S structure includes non-US investors directly. Broad chain availability for DeFi composability. Bermuda BMA regulatory clarity. USDM is the alternative if the rebasing stablecoin format fits the operational use case better. BUIDL is not directly accessible to non-US buyers without going through specific institutional channels; BENJI international availability varies by jurisdiction.

DAO treasury on chain

Depends on chain. For Ethereum-anchored DAOs, BUIDL (if qualifying as institutional) or USDY (cross-chain DeFi) are the typical choices. For Solana-anchored DAOs, USDY's Solana availability is the practical default. For Cosmos-anchored DAOs, USDY through Noble is the standard pattern. BENJI's chain availability has expanded but DeFi composability remains the relative weakness.

Yield-farming / DeFi-native protocol

First choice: USDY or USDM. Both are designed for DeFi composability. USDY's broader chain footprint gives more deployment options. USDM's rebasing stablecoin format integrates naturally with yield-aggregation protocols expecting stablecoin-style tokens.

Tax mechanics vary across the four products and across investor jurisdictions. The summary below is general framing; specific tax situations require consultation with a tax professional in the relevant jurisdiction.

BENJI / FOBXX (US-registered MMF)

US investors receive dividends reported on Form 1099-DIV, taxed as ordinary income at marginal rates. Standard money market fund treatment for US tax purposes. The tokenization wrapper does not change the tax treatment from a traditional money market fund.

BUIDL (BVI fund)

US qualified purchasers typically receive fund income through K-1 or similar pass-through reporting depending on the holding entity structure. BVI-domiciled fund treatment varies materially by investor type and tax planning structure. The yield is functionally similar to a traditional offshore institutional fund.

USDY (price-appreciation yield, non-US)

The price-appreciation mechanism means yield is realised at the point of sale or redemption rather than continuously. Tax treatment in the holder's jurisdiction depends on whether the appreciation is treated as ordinary interest income (most common for tokenized treasury yield) or as capital gain. For non-US investors specifically, the price-appreciation model can be operationally simpler than rebasing because fewer taxable events occur per year and accounting is simpler.

USDM (rebasing stablecoin, non-US)

Daily rebasing may be treated as a taxable event in some jurisdictions and as a non-event in others. Specific treatment depends on local tax authority guidance for rebasing tokens, which is evolving as of 2026. For high-rebasing-frequency products, the operational complexity of tracking each rebasing event can be material; tax-aware investors often consult specialists for rebasing token positions.

None of this is tax advice. Cross-border investors holding any of the four products should specifically map the tax treatment for their jurisdiction and entity structure before sizing positions.

• AUM figures are issuer self-reported or rwa.xyz-tracked. All four products' AUM changes materially with treasury yield cycles, large institutional inflows or redemptions, and ongoing product expansion. Verify current AUM directly with each issuer for any commercial decision.
• Fee structures are not always publicly listed. BUIDL specifically does not publish a complete fee schedule on its rwa.xyz listing. Net yield figures in this guide are market-observable ranges based on issuer disclosures and DeFi protocol data; specific commercial terms vary.
• Chain footprints expand over time. All four products have added chains since launch. Current chain availability should be verified directly through the issuer or rwa.xyz before committing to a specific chain integration.
• Regulatory positioning evolves. The SEC's evolving treatment of tokenized money market funds, MiCA's interaction with non-EU money market products, and stablecoin regulation in major jurisdictions all change the relative attractiveness of the four products. The 2026 picture may shift materially by 2027.
• This guide is platform-neutral and product-neutral. The author has no commercial relationship with BlackRock, Securitize, Franklin Templeton, Ondo Finance, or Mountain Protocol. The analysis reflects market-observable patterns as of mid-2026, not vendor preference.
• None of this is investment advice. Tokenized treasury exposure should be sized within the context of overall portfolio, liquidity needs, tax residency, and yield-target requirements. Specific allocation decisions require an advisor familiar with the buyer's situation.