Holding a tokenized money market fund onchain means owning a transfer-restricted token that represents shares in a regulated fund holding US Treasury bills and repo, with your wallet address recorded on an approved whitelist by the fund's transfer agent. As of May 2026, the four largest accessible funds are USYC at roughly $3.0 billion, BlackRock's BUIDL at about $2.5 billion, Franklin Templeton's BENJI near $828 million, and Ondo's OUSG around $620 million (rwa.xyz). Unlike a stablecoin, you cannot just receive one of these tokens in any wallet. Access is gated by KYC, and that gate is the first thing to understand.
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This is the operator view that most search results skip. The macro coverage from JPMorgan research and the New York Fed explains why tokenized funds matter for collateral markets. It rarely tells you which fund a non-institutional wallet can actually open, what the subscription minimum is, where redemption settles, or how a share moves from Ethereum to Solana. Those mechanics are below.
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Holding a tokenized money market fund onchain means your fund shares exist as a permissioned token on a public blockchain, with the issuer's transfer agent keeping the official ownership record. The token tracks a net asset value of around $1.00 and accrues T-bill yield, but it only moves between wallets the issuer has KYC-approved. It is a security wrapper, not bearer money.
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The distinction matters because a tokenized fund is a registered investment product, not a stablecoin. BlackRock's BUIDL is the BlackRock USD Institutional Digital Liquidity Fund, administered by Securitize, where Securitize Transfer Agent LLC maintains the legal share register and links each wallet address to a verified investor identity. The smart contract enforces a whitelist: a transfer to a non-approved address simply reverts. Front-end yields on these funds tracked roughly 4.0 to 4.5 percent through early 2026, reflecting short-dated US Treasury rates rather than any onchain mechanism.
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BENJI is structured differently but follows the same logic. Each BENJI token represents one share of the Franklin OnChain US Government Money Fund, a US-registered 1940 Act mutual fund that Franklin Templeton first launched on Stellar in 2021. Because BENJI is a registered fund and BUIDL is a private fund for qualified purchasers, the two have very different access rules even though both hold government securities. That difference drives everything that follows.
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Fig 1. The whitelist contract and offchain register are what separate a tokenized fund from a freely transferable stablecoin.
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Access depends on whether the fund is a private placement for qualified purchasers or a registered retail product. BUIDL, USYC, and OUSG require institutional or qualified-purchaser status with high minimums, while BENJI accepts retail investors from $20 through the Benji Investments app. As of May 2026, these four funds hold a combined total above $6 billion onchain (rwa.xyz).
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The practical sorting question is the minimum and the investor class. BUIDL requires investors to be qualified purchasers under US securities law and sets a $5 million minimum subscription with a $250,000 redemption minimum, per CoinDesk's May 2026 reporting. That puts BUIDL out of reach for almost any individual wallet. Ondo's OUSG sets a lower bar at a $5,000 minimum for instant transactions but still restricts access to verified, non-US-retail investors per its documentation.
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USYC, the Hashnote International Short Duration Yield Fund now part of Circle's reserve-products family, opens at roughly $100,000 and targets institutional treasuries and trading firms, per the USYC docs. BENJI is the outlier: a $20 retail minimum, no redemption fee, and no minimum redemption amount, processed daily through Franklin Templeton's app. The table below sorts the four by what a prospective holder needs to clear before any token reaches a wallet.
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The pattern is clear from the table: the largest funds by AUM carry the highest access bars, because institutional capital concentrates where the minimums fence out retail flow. The pillar guide to the top tokenized treasury funds covers the full field, including USDY and smaller entrants, for readers comparing more than these four.
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Clearing access means passing the issuer's identity verification and getting your wallet address added to the fund's onchain whitelist. The transfer agent runs KYC and AML checks, confirms your investor class, and then writes your address into the smart contract's approved list. Until that write happens, the contract rejects every incoming transfer of the token.
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The flow runs offchain first, then onchain. For BUIDL, an investor completes Securitize's KYC and AML review and attests to qualified-purchaser status before the wallet is included in the contract whitelist, per Securitize's account onboarding. For BENJI, verification happens inside the Benji Investments app, which Franklin Templeton built as the retail-to-institutional interface for subscription and redemption alongside portfolio tracking. The app is the gate; there is no way to buy BENJI by sending USDC to a contract from an unverified wallet.
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Two access tiers exist in practice. The institutional tier (BUIDL, USYC) routes through a regulated broker-dealer or transfer-agent onboarding with accreditation checks. The retail-accessible tier (BENJI, and OUSG for non-US qualified investors) runs lighter verification through an app or web portal. Either way, the whitelist is the enforcement layer. The Solana BUIDL share class launch in 2025 confirmed that even adding a new chain requires re-whitelisting addresses on that chain.
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You need a wallet whose address has been KYC-approved by the fund, which can be a self-custody wallet like MetaMask or Phantom, a qualified custodian's wallet, or an issuer-managed account. The token is standard onchain (ERC-20 on EVM chains), so it appears in any compatible wallet, but it will only transfer to other approved addresses.
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For institutional holders, custody usually sits with a regulated provider rather than a browser extension. BUIDL holders commonly custody through Securitize-integrated custodians or qualified-custodian arrangements, because a $5 million position rarely lives in a hot wallet. For retail BENJI, custody is effectively managed inside the Franklin Templeton app, though the underlying token is recorded on chains including Stellar, Ethereum, and Polygon.
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The key constraint is that wallet identity and onchain address are bound together. If you move BUIDL to a new self-custody wallet, that new address must be whitelisted first, or the transfer reverts. This is the opposite of a stablecoin like USDC, which any address can receive. A wallet holding a tokenized fund is closer to a brokerage account that happens to live onchain. For a side-by-side on this access-and-transfer difference, see tokenized money market fund vs stablecoin.
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Fig 2. Whichever custody path you pick, the wallet address must be on the fund's whitelist before any token arrives.
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Subscription and redemption usually settle in USDC against the fund token. You send USDC to mint shares and receive USDC back when you redeem, with the fund's transfer agent or contract issuing or burning tokens to match. Redemption speed ranges from same-day instant on some funds to T+1 on others, depending on the product.
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USYC, BUIDL, and OUSG each subscribe and redeem in USDC, which makes the Circle dollar the standard settlement leg across the institutional tier. The dollars never leave a regulated rail: USDC goes in, fund shares come out, and the reverse on the way back. USYC supports same-day (T+0) atomic subscription and redemption into USDC, redeemable 24/7 up to its instant-redemption capacity, per the Hashnote subscription docs. OUSG offers instant minting and redemption in USDC, governed by a $50 million global 24-hour limit and a $25 million per-investor limit that reset daily, per Ondo's instant-limits page.
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BENJI processes redemption orders daily with no redemption fee and no minimum redemption amount, reflecting its structure as a registered money market fund rather than a private placement. The trade-off across these funds is speed versus access: OUSG and USYC offer near-instant USDC settlement but demand qualified status, while BENJI is open to retail at a daily processing cadence. Whichever you hold, redemption returns dollars to your whitelisted wallet, not to an arbitrary address.
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Moving a tokenized fund across chains requires a cross-chain mechanism the issuer has authorized, plus a whitelisted address on the destination chain. BUIDL uses Wormhole for cross-chain interoperability across its seven supported networks, but the receiving wallet must already be KYC-approved on the target chain before the share can land there.
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As of May 2026, BUIDL is live on Aptos, Arbitrum, Avalanche, Ethereum, Optimism, Polygon, and Solana, with Wormhole enabling movement between them per BlackRock and Securitize's expansion. BENJI spans nine networks including Stellar, Ethereum, Polygon, Avalanche, Arbitrum, Aptos, Base, Solana, and BNB Smart Chain, per Franklin Templeton's five-year BENJI milestone. The chain count keeps rising because each new deployment opens the fund to that chain's wallet base.
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The practical friction is that a tokenized share cannot ride a generic bridge the way a stablecoin can. It moves only through issuer-blessed transport, and the destination address must clear the same whitelist. This is where stablecoin routing infrastructure stays separate from fund movement: the USDC you subscribe or redeem with can route across chains freely, while the fund token itself stays inside the permissioned rail. Eco Routes handles the USDC settlement leg across chains, so an institution redeeming a tokenized fund on one network can move the resulting dollars to where they are needed without managing bridge mechanics manually.
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Yes, through BENJI. Franklin Templeton's BENJI accepts retail investors from a $20 minimum via the Benji Investments app, with daily redemption and no redemption fee. BUIDL, USYC, and OUSG require qualified-purchaser or institutional status with minimums from $5,000 to $5 million, so they remain out of reach for most individuals.
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Yes. Tokenized money market funds accrue the underlying T-bill and repo yield, roughly 4.0 to 4.5 percent through early 2026, while you hold the token. Some funds mint new tokens to reflect accrued yield and others increase the token's value, but you do not need to stake or take any onchain action to earn it.
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The transfer reverts. The fund's smart contract checks both the sending and receiving addresses against its KYC-approved whitelist and rejects any transfer involving an unapproved address. This is the core difference from a stablecoin, which any wallet can receive. The token never leaves the permissioned set of addresses.
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No. Redemption speed depends on the fund and its capacity. USYC and OUSG support near-instant USDC redemption but cap daily instant volume, OUSG at a $50 million global 24-hour limit. BENJI processes redemptions daily rather than instantly. Above instant capacity, redemptions fall back to a standard settlement window.
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Continue with these articles on tokenized funds and the dollars that settle them:

Sources and methodology. Fund AUM figures pulled from rwa.xyz in May 2026. Minimums, chains, and redemption terms verified against issuer documentation from Securitize, Franklin Templeton, Hashnote/Circle, and Ondo Finance, plus CoinDesk reporting from May 2026. Yield figures reflect short-dated US Treasury rates and refresh quarterly.
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For the dollar leg of any tokenized-fund workflow, Eco Routes moves USDC across the networks where these funds settle, so treasuries can subscribe or redeem on one chain and route the proceeds to another without hand-managing bridges. Updated May 2026.
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