A $407 million Treasury fund reveals how Wall Street is building crypto’s missing collateral layer
Tokenized sovereign debt has become a real, if conservative, market category. Most live products are not direct onchain government bonds; they are tokenized claims on Treasury exposure inside regulated fund structures, with blockchain used for ownership records, transfer rails, subscriptions, and settlement. A major example is Ondo’s OUSG, which has about $407 million in assets, yields around 3.45%, and is distributed across XRPL and Ethereum. It is restricted to accredited investors and qualified purchasers, showing the category is built for regulated access, not open retail speculation. OUSG also allocates to other tokenized Treasury products, including BlackRock’s BUIDL, Franklin Templeton’s BENJI, Fidelity’s Treasury Digital Fund, and State Street Galaxy’s onchain liquidity fund. The main value proposition is programmable, yield-bearing collateral for digital markets, filling a gap left by stablecoins, which provide fast dollar transfer but no yield. Tokenization improves portability and automation, but legal rights still depend on the underlying fund structure and securities law. Growth reflects usable infrastructure, not fully solved liquidity or ownership issues.
