Tokenized Money Market Funds in 2026: Providers, AUM and How to Tokenize a Fund

Tokenized money market funds are ordinary money market funds whose shares are issued or recorded as blockchain tokens, so investors can subscribe, redeem and transfer them in minutes, 24 hours a day, and post them as collateral. BlackRock's BUIDL, Franklin Templeton's BENJI funds and J.P. Morgan's MONY and JLTXX are the best known. As of 16 October 2026, RWA.xyz tracked $14.68 billion in tokenized Treasury and money market products across 86,753 holders.

The pitch is simple: a cash fund that earns Treasury yield but moves like a stablecoin. Over the past year that pitch turned into real plumbing. Binance, Bybit and OKX accept tokenized fund shares as trading collateral, US derivatives regulators issued guidance on tokenized collateral in December 2025, and the GENIUS Act named tokenized reserves as an eligible backing for stablecoins.

This guide lists the main funds with current AUM, explains how a fund is actually tokenized (transfer agent, whitelist, NAV and dividends), shows how the collateral model works with the maths, compares the rules in the US, Singapore, UAE and Japan, and sets out a build path with costs.

Key Takeaways

• The market is about $14.7 billion. RWA.xyz shows $14.68 billion in tokenized Treasury and money market products on 16 October 2026, led by Circle's USYC ($2.38 billion), Ondo's USDY ($2.36 billion) and BlackRock's BUIDL ($2.17 billion).
• Not every "tokenized Treasury" is a money market fund. USDY is a note, OUSG is a fund-of-funds, and BUIDL is a private BVI fund. Only some products, such as Franklin's FOBXX and J.P. Morgan's JLTXX, are US-registered money market funds.
• The transfer agent is the heart of it. The legal register lives with the transfer agent; the token either is that register (Franklin) or mirrors it (most others).
• Collateral is the killer use case. Exchanges now let institutions post fund shares held off-exchange, earning yield while trading.
• Registered funds have a regulatory edge. The GENIUS Act lets stablecoin issuers hold registered government money market fund shares, including in tokenized form, as reserves.
• Building one starts at $25,000. Pixel Web Solutions prices an RWA platform MVP at $25,000 to $50,000, plus fund setup, legal and audit costs.

What Are Tokenized Money Market Funds?

A tokenized money market fund is a regulated fund that holds short-term government debt and repo, with its shares represented as tokens on a blockchain. The fund's assets do not change. What changes is how ownership is recorded and moved.

A traditional money market fund settles subscriptions through a transfer agent, usually once a day, during banking hours. A tokenized fund lets an approved investor send stablecoins or cash, receive tokens in a wallet, and transfer those tokens to another approved wallet at any time. That makes the fund usable in places a normal fund cannot go: crypto exchange margin accounts, stablecoin reserves and on-chain treasury tools.

Two models exist:

1. Native register. The blockchain record is the official share register. Franklin Templeton says its transfer agent keeps the official ownership record for FOBXX on the Benji platform, which uses public chains.
2. Mirrored register. The transfer agent keeps the legal register off-chain, and the token mirrors it. Most other funds follow this model, with a tokenization agent such as Securitize keeping the two in step.

Tokenized Money Market Funds List: Providers and AUM (October 2026)

Here are the largest products on the RWA.xyz Treasury league table as of 16 October 2026, with the product type added, because the table mixes funds and notes.

By platform, Ondo leads with $3.0 billion across 11 products, then Franklin Templeton's Benji family at $2.5 billion, Circle at $2.4 billion and Securitize at $2.3 billion. The average 7-day yield across the category was 3.36%.

BlackRock BUIDL

BlackRock launched BUIDL on 20 March 2024 with Securitize as transfer agent and tokenization platform and BNY as custodian and administrator. The fund holds cash, Treasury bills and repo, targets a $1 token value and pays daily accrued dividends as new tokens each month. RWA.xyz's BUIDL page shows the details most guides leave out:

• $5,000,000 minimum subscription and a $250,000 minimum redemption
• Management fee of 0.20% to 0.50%
• Domiciled in the British Virgin Islands, offered under Regulation D to US qualified purchasers
• Only 106 holders, with value down 17.62% over 30 days
• Largest chains: Solana ($871.6 million), Avalanche ($481.5 million) and Ethereum

That holder count matters. BUIDL is an institutional building block, used by other products such as Ondo's OUSG, which the Ondo Finance build guide covers in detail. A few large holders can move its AUM by hundreds of millions in a month.

Franklin Templeton BENJI

FOBXX, the Franklin OnChain US Government Money Fund, calls itself the first US-registered money market fund on-chain. One BENJI token equals one fund share. Yield accrues daily and new tokens are airdropped to holders. Retail and institutional investors can use Stellar; Polygon, Arbitrum, Avalanche, Aptos, Ethereum, Base, Solana and BNB Chain are open to institutions. Peer-to-peer transfers between shareholders went live for institutions in April 2024 and for retail in May 2025.

Franklin runs several share classes and sister funds across markets, including sgBENJI in Singapore, which DBS agreed to list against Ripple's RLUSD stablecoin in a September 2025 MoU.

J.P. Morgan MONY and JLTXX

J.P. Morgan Asset Management launched MONY on 15 December 2025 as a 506(c) private placement on Ethereum, sold through its Morgan Money platform, with subscriptions and redemptions in cash or stablecoins. On 13 May 2026 it followed with JLTXX, a US-registered government money market fund designed to support stablecoin issuers under the GENIUS Act, seeded with $100 million. Five months later JLTXX held $738.3 million.

How a Fund Is Tokenized: Transfer Agent, Whitelist and NAV

This is the part that decides your cost and your legal risk. Six components turn a fund into a tokenized fund.

1. The legal wrapper

Choose the fund vehicle before the chain. A US-registered money market fund follows Rule 2a-7 and can reach a wide investor base, but registration takes time. A private fund (Regulation D in the US, or an offshore vehicle such as a BVI or Cayman fund) launches faster but limits who can buy. The wrapper also decides whether the fund can back a US stablecoin, as shown later.

2. The transfer agent and register

The transfer agent records who owns each share. You either make the blockchain the official register, as Franklin does, or run a tokenization agent that mirrors the off-chain register and mints or burns tokens when it changes. If the token and the register ever disagree, the register wins in court. Your reconciliation process must make disagreement impossible, or at least visible within minutes.

3. The whitelist

Fund shares can only be held by eligible investors. Token contracts therefore check an identity registry before every transfer. ERC-3643 was built for this: it links each wallet to verified claims (KYC done, qualified purchaser, not a US person, and so on) and blocks transfers that fail. The ERC-3643 vs ERC-7943 guide compares it with the lighter ERC-7943 interface.

4. NAV and the $1 token

Most tokenized money market funds keep a stable $1.00 share price and pay income as extra tokens. The alternative is an accumulating token whose price rises each day. A stable $1 token is easier to use as collateral and in DeFi; an accumulating token is simpler for tax reporting in some countries. The fund administrator strikes NAV daily, and the contract or an oracle publishes it.

5. Dividends as new tokens

Worked example. An investor holds $10,000,000 of a fund with a 3.69% 7-day yield (BUIDL's figure on RWA.xyz in October 2026).

• Daily accrual: $10,000,000 x 3.69% / 365 = $1,010.96 a day
• Monthly accrual (30 days): $1,010.96 x 30 = $30,329
• If the fund pays monthly in tokens at $1.00, the wallet receives about 30,329 new tokens
• If the fund airdrops daily like BENJI, the wallet receives about 1,011 tokens a day

Your smart contract and your investor dashboard both need to handle this. So does any exchange that accepts the token as collateral, because collateral value grows each day.

6. Subscription and redemption rails

Investors increasingly want to subscribe with stablecoins. J.P. Morgan accepts cash or stablecoins for MONY and JLTXX. That means the platform needs a stablecoin treasury wallet, conversion to dollars at the custodian, and a cut-off rule for same-day settlement. For a step-by-step view of these modules, see the guide to tokenization as a service, which compares renting this stack with owning it.

Using Tokenized Money Market Funds as Collateral

Collateral is why exchanges and prime brokers care. A trader who parks $50 million in USDT on an exchange earns nothing. The same trader holding fund tokens earns Treasury yield, and in 2026 can still use them as margin.

How the off-exchange model works

The common pattern is collateral mirroring. The fund tokens stay with a regulated custodian. The exchange reads their value and credits trading margin. If the trader defaults, the custodian releases the tokens to the exchange.

Live programmes in 2026 include:

• Franklin Templeton and Binance, announced on 11 February 2026, with shares held by Ceffu Custody FZE, a Dubai-licensed virtual asset custodian.
• Franklin Templeton and Bybit, where clients pledge Benji fund shares through ByCustody for USDT or USDC credit lines, per the joint announcement.
• Franklin Templeton, Standard Chartered and OKX, a collateral mirroring programme promoted on Franklin's Benji page.
• QCDT on Bybit, a DFSA-approved tokenized money market fund managed by Qatar National Bank, which Bybit accepted as collateral in September 2025.

Worked example: margin with yield

Assume an exchange applies a 5% haircut to fund tokens (an illustrative figure; each venue sets its own).

• Fund tokens pledged: $20,000,000
• Margin credit: $20,000,000 x (1 – 5%) = $19,000,000
• Yield kept by the trader at 3.36% (the RWA.xyz category average): $20,000,000 x 3.36% / 12 = $56,000 a month
• Same margin in idle stablecoins: $0 a month

The cost of the haircut is $1,000,000 of buying power. The benefit is roughly $672,000 a year of yield plus lower exposure to exchange failure, since the assets never sit on the exchange's balance sheet.

What US regulators said

On 8 December 2025 CFTC staff issued Letter 25-39 on tokenized collateral for futures and swaps. It covers tokenized Treasuries and money market funds and takes a technology-neutral view: assets already eligible as margin can be used in tokenized form, with the usual haircuts adjusted for settlement and operational risk.

Regulation by Market: US, Singapore, UAE and Japan

United States: the GENIUS Act angle

The GENIUS Act's reserve rules let a permitted stablecoin issuer hold shares of a registered government money market fund that invests only in eligible assets, and any of those reserves "in tokenized form", according to Section 4 of the enacted law. On a plain reading, a private offshore fund does not fit that clause. That explains why J.P. Morgan built JLTXX as a registered fund aimed at stablecoin issuers. If your target buyer is a stablecoin issuer, the fund wrapper is a product decision, not just a legal one. The broader stablecoin rules are covered in the guide to what stablecoins are.

Singapore

MAS's Guide on the Tokenisation of Capital Markets Products looks through the token to the economic substance. A tokenized fund unit is regulated as a fund unit, so offering rules, licensing for dealing and customer asset protections still apply.

UAE

Fund tokens in the UAE usually sit in DIFC (DFSA) or ADGM (FSRA). QCDT is described by its sponsors as the first DFSA-approved tokenized money market fund. The collateral leg can involve VARA: Franklin's Binance programme uses a VARA-licensed custodian in Dubai.

Japan

MUFG Asset Management launched what it describes as Japan's first tokenized money market fund on the Progmat platform, with Mitsubishi UFJ Trust and Banking as trustee, as Ledger Insights reported. It started as an internal group trial, with plans to open it to institutional investors later.

Build Path: How to Tokenize a Fund

A fund manager, bank or fintech can take one of three routes.

Build times are estimates for the software only. Distribution platforms at the top tier work like the model described in the guide to building an RWA platform like Securitize. Fund registration, legal opinions, audits and custody agreements run in parallel and often take longer than the code. A white-label tokenization platform can shorten the MVP stage when the manager wants a branded portal quickly.

The build steps

1. Fund and wrapper decision. Registered or private, onshore or offshore, stable or accumulating NAV.
2. Register design. Native on-chain register or mirrored register with a tokenization agent.
3. Token contracts. ERC-3643 or a similar permissioned standard, with mint, burn, freeze, forced transfer and dividend logic.
4. Investor onboarding. KYC, accreditation checks and wallet verification feeding the identity registry.
5. Subscription and redemption. Cash and stablecoin rails, cut-off times, NAV publication.
6. Integrations. Custodian, fund administrator, and collateral partners such as exchanges.
7. Audit and launch. Smart contract audit, reconciliation testing and a dry run of a full month of dividends.

Decision Framework: Five Questions Before You Build

• Who is the buyer? Stablecoin issuers need a registered government fund; crypto funds need collateral integrations; corporates need a simple portal.
• Where will tokens travel? Staying inside one platform is cheaper; moving across exchanges and chains needs allowlists that travel with the token.
• Native or mirrored register? Native is cleaner but needs a transfer agent willing to treat the chain as the record.
• Which chains? BUIDL's largest balance is now on Solana, not Ethereum, so follow where your buyers already hold stablecoins.
• How will collateral partners value the token? Agree NAV feeds, haircuts and default procedures before launch.

Risks to Plan For

• Holder concentration. BUIDL has 106 holders for $2.17 billion. A few redemptions can halve a smaller fund.
• Redemption timing. Tokens move 24/7, but the underlying fund still redeems through banking hours. Plan for weekend liquidity requests.
• Smart contract and key risk. Forced transfer and freeze powers protect investors but must be governed by multi-signature controls.
• Yield compression. If rates fall, the advantage over stablecoins shrinks while costs stay fixed.

How Pixel Web Solutions Can Help

Pixel Web Solutions builds fund tokenization platforms from its offices in Ras Al Khaimah, UAE and Madurai, India. The team designs ERC-3643 fund tokens, transfer agent synchronisation, stablecoin subscription rails, dividend and NAV logic, and collateral integrations with custodians and exchanges. Managers who want their own platform can review the RWA tokenization platform development service or book a consultation for a scoped estimate.

Frequently Asked Questions

What is the largest tokenized money market fund?

By RWA.xyz's October 2026 data, Circle's USYC and BlackRock's BUIDL are the largest fund products, at $2.38 billion and $2.17 billion. Ondo's USDY is similar in size but is a note, not a fund. Franklin Templeton's Benji family totals about $2.5 billion across share classes.

What is BlackRock's tokenized money market fund?

It is the BlackRock USD Institutional Digital Liquidity Fund, BUIDL, launched in March 2024 with Securitize. It is a BVI fund for US qualified purchasers with a $5 million minimum, and it pays dividends as new tokens each month.

Can tokenized money market funds be used as collateral?

Yes. Binance, Bybit and OKX run programmes that accept tokenized fund shares as margin while the shares stay with a regulated custodian. CFTC staff guidance from December 2025 also confirms that tokenized money market funds can serve as collateral under existing US derivatives rules.

Are tokenized money market funds safe?

They carry the same investment risk as the underlying fund, which holds short-term government debt and repo, plus smart contract, custody and operational risk. They are not bank deposits and are not FDIC insured.

How do you tokenize a money market fund?

Choose the fund wrapper, appoint a transfer agent that can maintain or mirror an on-chain register, issue permissioned tokens with a whitelist, set up NAV and dividend logic, connect cash and stablecoin rails, and audit everything before launch.

Can retail investors buy tokenized money market funds?

Some can. Franklin Templeton offers FOBXX to retail investors through the Benji app on Stellar. Most others, including BUIDL and MONY, are limited to qualified or institutional investors.

Tokenized money market funds are becoming the yield-bearing cash layer of on-chain finance. The managers who win will pick the right fund wrapper for their buyer, keep the register and the token in lockstep, and plug into the exchanges and stablecoin issuers that need tokenized collateral.