Who holds tokenized Treasuries

Executive summary

On 25 July 2026 RWA.xyz recorded $16.20bn of distributed value in tokenized US Treasury products, spread across 85 assets and held by 62,950 addresses, at a trailing seven-day yield of 3.29%. That is 44% of the $36.82bn of tokenized real-world assets the same provider tracks outside stablecoins, and it makes government debt the largest non-stablecoin category by a wide margin.

The market is narrower than the asset count suggests. The ten largest products account for $14.02bn, or 86.5% of the total; the five largest account for $10.41bn, or 64.3%. The holder base is narrower still: 62,950 addresses across 85 products is a mean of 741 addresses per product, against 277.44m addresses holding stablecoins on the same provider's reading the same day. These are not retail instruments and their registers are not designed to be.

Two structural facts follow from the composition, and they matter more than the growth rate. First, the largest single product is not a US-registered fund: Circle's USYC represents a share in the Hashnote International Short Duration Fund Ltd., a Cayman Islands mutual fund, and it is accepted as off-exchange collateral by Binance's institutional clients. Second, where public filings do exist, they show ownership concentrated in a handful of names, including the manager's own affiliates. Redemption pressure in this market would arrive from a small number of large holders whose reason for holding is margin efficiency rather than a savings decision.

Key findings

1. Ten products hold 86.5% of the market. At RWA.xyz's 25 July 2026 reading the ten largest tokenized Treasury products totalled $14.02bn of the $16.20bn outstanding: USYC $3.00bn, BUIDL $2.61bn, Ondo USDY $2.16bn, iBENJI $1.76bn, Janus Henderson JTRSY $880.9m, JPMorgan JLTXX $811.3m, WisdomTree WTGXX $766.9m, Invesco USTB $738.3m, BENJI $734.8m and ChinaAMC USD Digital Money Market Class I $550.4m.

1. The register is institutional to the point of being thin. 62,950 holding addresses across 85 products on 25 July 2026 is a mean of 741 per product. The separately tracked non-US government debt category held $1.41bn across 24 assets and 10,008 holders on the same reading, of which one product, Spiko's euro T-bill fund at $1,023.3m, was 73%.

1. The audited, SEC-filed slice is small. The Franklin OnChain U.S. Government Money Fund reported net assets of $843.8m at 31 March 2026 in its Form N-CSR, up from $687.3m a year earlier. The WisdomTree Government Money Market Digital Fund reported $321.2m at 30 June 2025. Both figures are audited; most of the $16.20bn is not covered by any comparable public filing.

1. Disclosed ownership is concentrated at roughly a quarter in one hand. The Franklin fund's annual report to 31 March 2026 names three holders above the 5% disclosure threshold: Franklin Distributors, LLC at 13.7%, Franklin Advisers, Inc. at 13.6% and a family trust at 6.4%. The manager's own affiliates therefore held 27.3% of the only tokenized government fund in this market that publishes such a breakdown.

1. The liquidity sleeve is repo, not bills. The same Franklin filing shows 63.1% of the portfolio in US government and agency securities and 37.9% in repurchase agreements at 31 March 2026, across 81 positions. Overnight repo is what allows same-day redemption; the bill portfolio is not the first line of defence.

Analysis

Three wrappers sit behind the headline number and they carry different obligations. The first is the US-registered money market fund whose share register is kept on public networks: Franklin's fund, WisdomTree's, and a small number of others. Its transfer agent maintains the official record through what Franklin's filing calls "a proprietary blockchain-integrated system that utilizes features of traditional book-entry form and one or more public blockchain networks", and the filing is explicit that "all Fund and shareholder records in the blockchain-integrated system are under the full and complete control of the Fund's transfer agent". This is the most heavily disclosed segment and the smallest.

The second is the offshore professional fund sold into the United States by private placement. BUIDL is registered with the British Virgin Islands Financial Services Commission as a professional fund and was placed under Regulation D, with Securitize acting as transfer agent and placement agent. USYC, the largest product in the market at $3.00bn, is a share in a Cayman Islands mutual fund with Circle International Bermuda Limited, licensed by the Bermuda Monetary Authority, as token administrator. Neither files an audited annual report on EDGAR. Nothing about this is irregular for a fund sold to qualified purchasers, but it means the largest product in a market described as tokenized Treasuries is legally an offshore fund share, and its holder register is not public.

The third is the yield-bearing note, of which Ondo's USDY at $2.16bn is the largest. A note is a debt claim on the issuer, collateralised by Treasuries and bank deposits, and it is not a fund share; the holder's recourse runs to the issuer rather than to a pool of securities held by a custodian for shareholders. Aggregating the three into one figure is convenient and hides a material difference in what a holder owns.

Networks matter less than the wrapper. The large funds mirror one register across several chains, so per-chain balances are fragments rather than independent pools; RWA.xyz lists products across Ethereum, Arbitrum, Solana, Stellar, BNB Chain, ZKsync Era, Polygon, Avalanche, Base, Hedera and XDC, with Ethereum carrying the largest concentration. A chain-level failure is an availability problem for transfers on that chain, not a claim problem, because the authoritative register sits with the transfer agent.

The redemption question is where concentration bites. Circle's announcement of 24 July 2025 that USYC would be accepted as yield-bearing off-exchange collateral for Binance's institutional clients, held through Binance Banking Triparty or with Ceffu, tells you what the marginal holder is buying: margin that earns. That is a good product and a procyclical one. A sharp move in crypto derivatives markets raises variation margin calls at the same moment as it raises the incentive to convert collateral into cash, and the token's continuous transferability does not extend to the primary market, where subscriptions and redemptions are struck at net asset value against a bill and repo book that trades on conventional hours. The 37.9% repo weighting in the one portfolio we can inspect is the answer to that mismatch, and it is also the reason a tokenized government fund is not simply a bill portfolio.

Concentration on the holder side compounds it. A mean of 741 addresses per product, and disclosed single-name ownership of 13.7% in the fund that must disclose, imply that in most of these vehicles a single redemption decision is a large fraction of net assets. A US-registered money market fund manages that exposure under rules that are public and supervised. In the offshore vehicles that dominate this market the equivalent tools sit in the offering documents rather than in a rule, and they are not publicly verifiable.

Methodology and data

Market-level figures are RWA.xyz's distributed value, read on 25 July 2026: $16.20bn across 85 assets, 62,950 holders, a 3.29% trailing seven-day yield and a 6.28% increase over the preceding 30 days. Distributed value counts only the portion of a product issued and transferable as a token on an indexed network; the same page reported represented value, meaning a conventional holding with a blockchain record, at $91.15m, down 43.63% over 30 days. The two are not additive. Non-US government debt is tracked separately and stood at $1.41bn across 24 assets and 10,008 holders. The all-asset comparison figure, $36.82bn of distributed value excluding stablecoins, and the stablecoin holder count of 277.44m, come from the same provider's overview page on the same day.

Fund-level figures come from annual reports on Form N-CSR filed with the SEC: Franklin Templeton Trust for the fiscal year ended 31 March 2026, and WisdomTree Digital Trust for the year ended 30 June 2025. Portfolio weights, position counts and the 5% shareholder disclosures are taken from those filings. Structural facts about USYC are from Circle's press release of 24 July 2025; BUIDL's regulatory category is from the BVI Financial Services Commission register. Spiko's euro fund is cross-checked against the issuer's own published figure of €886.24m with 3,112 users, accessed 25 July 2026, which is consistent with the $1,023.3m the tracker reports at prevailing exchange rates.

Concentration shares are simple sums of listed product values divided by the reported total. They are not weighted for products issued by the same manager: Franklin Templeton's two listed products together were $2.49bn on 25 July 2026, which would make it the largest issuer group rather than the fourth-largest product.

Limitations

Holder distributions are the data this piece most needed and could not get. RWA.xyz gates per-product holder counts and top-holder breakdowns behind a login, so the 741-address mean is the only concentration measure available at market level, and a mean across products of wildly different sizes is a weak statistic. The distribution within a product is what determines redemption risk, and for the offshore funds it is not published anywhere.

Tracker figures are estimates derived from indexed contract balances, not from administrators' books. The provider itself is inconsistent across readings: on 22 July 2026 secondary reporting citing RWA.xyz gave $15.86bn, three days before the $16.20bn used here, and different tracked product values appeared on the same page during this research, so the series should be read at weekly rather than daily resolution. Anything quoted here to the nearest $100m carries an error bar wider than that.

The audited figures and the tracker figures measure different objects and cannot be reconciled. Franklin's $843.8m at 31 March 2026 is one US-registered fund; the $1.76bn and $734.8m the tracker attributes to iBENJI and BENJI on 25 July 2026 include offshore share classes at a date sixteen months apart from the WisdomTree filing and four months apart from Franklin's. Any conclusion about growth that mixes the two is unsafe.

Finally, the redemption argument in this piece is structural rather than observed. There has been no episode in which tokenized government funds faced large simultaneous redemptions, so the claim that collateral use makes outflows procyclical is an inference from the product design and from Circle's own description of the use case, not a measured result. Nor is it known how much of the outstanding stock is pledged as margin at any venue; no exchange publishes that figure, and without it the size of the procyclical share cannot be estimated.