Key Takeaways
- • Tokenized funds reached a $37.8 billion market capitalization as of early November 2026, per Token Terminal data, up roughly 941% since late 2023 when the sector was worth about $3 to $4 billion.
- • US Treasury bill funds are now the largest tokenized fund category at $13.5 billion, ahead of yield strategies at $11.4 billion and credit funds at $8.3 billion.
- • T-bill funds overtook yield strategies around April 2026, driven by institutional demand for onchain cash management and access to Treasury yields.
- • Only about 0.4% of the T-bill fund market cap is used in decentralized finance applications, with holders largely holding tokens rather than deploying them in lending, trading or collateral systems.
- • BlackRock (BUIDL), Circle (USYC), Ondo Finance (USDY) and JPMorgan (JLTXX, launched on Ethereum in May 2026) are competing for the same onchain cash pool, with products of broadly similar size.
Summary
Tokenized funds have reached a market capitalization of $37.8 billion, according to data from Token Terminal, as of early November 2026. The figure represents an increase of approximately 941% since late 2023, when the sector was valued at roughly $3 to $4 billion, meaning the category has grown about tenfold in roughly three years.
US Treasury bill funds are now the largest fund type within the tokenized market at $13.5 billion. Token Terminal's breakdown places yield strategies second at $11.4 billion and credit funds third at $8.3 billion. The T-bill category overtook yield strategies around April 2026, reversing the ranking that had previously made yield products the dominant segment. The growth has been attributed to rising institutional appetite for onchain cash management and access to Treasury yields.
Major issuers are well represented. Ondo Finance's USDY is valued between $2.1 billion and $2.4 billion, and Circle's USYC is estimated at $2.2 billion to $2.7 billion. BlackRock's BUIDL carries a market cap of $1.9 billion to $2.7 billion. The article notes that the ranges reflect differing estimates across data sources. JPMorgan launched JLTXX, a tokenized government money market fund, on Ethereum in May 2026, and the fund grew to hundreds of millions of dollars in assets within a short period.
DeFi integration remains limited. Only about 0.4% of the T-bill fund market cap is currently used in decentralized finance applications. The article characterizes most of the $13.5 billion as held rather than actively deployed, with holders keeping tokens instead of using them in lending protocols, trading venues or collateral systems. Yield and credit products see considerably higher DeFi usage than their Treasury-backed counterparts.
Tokenized funds represent shares in money market and Treasury products issued as digital tokens on public blockchains. The structure allows transfer and settlement without many traditional intermediaries, while regulated firms continue to hold the underlying reserves. The article describes T-bill tokens as increasingly treated as core infrastructure for managing cash on blockchains. Key developments to monitor include whether T-bill funds extend their lead over yield strategies, how quickly newer entrants such as JLTXX scale, and whether the 0.4% DeFi share begins to change.
US Treasury bill funds are now the largest fund type within the tokenized market at $13.5 billion. Token Terminal's breakdown places yield strategies second at $11.4 billion and credit funds third at $8.3 billion. The T-bill category overtook yield strategies around April 2026, reversing the ranking that had previously made yield products the dominant segment. The growth has been attributed to rising institutional appetite for onchain cash management and access to Treasury yields.
Major issuers are well represented. Ondo Finance's USDY is valued between $2.1 billion and $2.4 billion, and Circle's USYC is estimated at $2.2 billion to $2.7 billion. BlackRock's BUIDL carries a market cap of $1.9 billion to $2.7 billion. The article notes that the ranges reflect differing estimates across data sources. JPMorgan launched JLTXX, a tokenized government money market fund, on Ethereum in May 2026, and the fund grew to hundreds of millions of dollars in assets within a short period.
DeFi integration remains limited. Only about 0.4% of the T-bill fund market cap is currently used in decentralized finance applications. The article characterizes most of the $13.5 billion as held rather than actively deployed, with holders keeping tokens instead of using them in lending protocols, trading venues or collateral systems. Yield and credit products see considerably higher DeFi usage than their Treasury-backed counterparts.
Tokenized funds represent shares in money market and Treasury products issued as digital tokens on public blockchains. The structure allows transfer and settlement without many traditional intermediaries, while regulated firms continue to hold the underlying reserves. The article describes T-bill tokens as increasingly treated as core infrastructure for managing cash on blockchains. Key developments to monitor include whether T-bill funds extend their lead over yield strategies, how quickly newer entrants such as JLTXX scale, and whether the 0.4% DeFi share begins to change.
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