Tokenized Funds Reach $37.8 Billion as T-Bills Lead

By Nathan Brooks

Tokenized funds reached a $37.8 billion market capitalization in early November 2026, according to Token Terminal data. The total marks an increase of approximately 941% from the roughly $3 billion to $4 billion recorded in late 2023, or about tenfold growth in roughly three years.

U.S. Treasury bill funds now form the largest category, at $13.5 billion. Token Terminal places yield strategies at $11.4 billion and credit funds at $8.3 billion. T-bill products overtook yield strategies around April 2026, moving from the second-place category to the top.

Tokenized funds represent shares in money market and Treasury products as digital tokens on public blockchains. Regulated firms hold the underlying reserves. The token structure allows investors to transfer and settle those shares without the conventional web of intermediaries.

That arrangement has shifted the sector from a niche representation of funds toward a practical cash-management rail. The market assessment describes T-bill tokens as “core infrastructure for managing cash on blockchains, not side projects.”

The cited data links the expansion to rising institutional appetite for onchain cash management and access to Treasury yields. The leading products have converged into a narrow size band:

• Ondo Finance’s USDY is valued at $2.1 billion to $2.4 billion.
• Circle’s USYC is estimated at $2.2 billion to $2.7 billion.
• BlackRock’s BUIDL carries a market capitalization of $1.9 billion to $2.7 billion.

The ranges for USDY, USYC and BUIDL reflect differing estimates across data sources rather than three clearly separated leaders. Their proximity nevertheless shows how quickly major issuers have reached comparable scale.

JPMorgan expanded the field in May 2026 by launching JLTXX, a tokenized government money market fund, on Ethereum. The fund grew to hundreds of millions in assets within a short window, placing it alongside established products in the race for onchain cash.

What does the 0.4% DeFi share change for token holders?

Only about 0.4% of the $13.5 billion T-bill fund market is used in decentralized finance applications. That percentage implies roughly $54 million in active DeFi deployment. Token Terminal’s breakdown puts it plainly: “almost all of that $13.5 billion is sitting still.”

Most holders are keeping the tokens rather than using them in lending protocols, trading venues or collateral systems. For token holders, the immediate benefit is a blockchain-based claim tied to a regulated firm’s reserves, with transfer and settlement on public networks; the immediate limitation is limited composability.

Yield and credit products see considerably higher DeFi usage than Treasury-backed counterparts. The contrast matters because a larger tokenized market does not automatically create deeper onchain credit, borrowing or trading markets. Asset growth and utility remain separate operating metrics.

BlackRock, Circle, Ondo and JPMorgan are now competing for the same pool of onchain cash, and their products sit within striking distance in size. The operational contest therefore extends beyond assets under management to how reliably each token can move, settle and integrate with the infrastructure institutions use.

The next market-structure test is whether T-bill funds extend their lead over yield strategies, whether JLTXX scales beyond its initial hundreds of millions, and whether the 0.4% DeFi share begins to rise. Without more onchain deployment, the market will remain primarily a cash-management system rather than a source of composable liquidity.