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Token Terminal data shows tokenized funds up roughly 941% since late 2023, with US Treasury bill funds now the largest category

Tue 10 Nov 2026 · 10:42 EST · 3 min read

In DeFi

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Tokenized funds have reached a market capitalization of $37.8 billion, according to data from Token Terminal. That figure, recorded as of early November 2026, represents an increase of approximately 941% since late 2023.

Back then, the whole sector was worth only around $3 to $4 billion. The category has grown roughly tenfold in about three years.

The biggest driver is also the least glamorous. US Treasury bill funds are now the largest fund type in the tokenized market, sitting at $13.5 billion.

T-bills take the top spot

Token Terminal breaks the tokenized fund market into several categories. T-bill funds lead at $13.5 billion, ahead of yield strategies at $11.4 billion and credit funds at $8.3 billion.

That ranking is fairly recent. T-bill funds overtook yield strategies around April 2026, flipping what had been the dominant category in the space.

The growth has been attributed to rising institutional appetite for onchain cash management and access to Treasury yields.

The big names behind the boom

Ondo Finance’s USDY is valued between $2.1 billion and $2.4 billion. Circle’s USYC is estimated at between $2.2 billion and $2.7 billion.

BlackRock’s BUIDL carries a market cap ranging from $1.9 billion to $2.7 billion. The spread in those ranges reflects differing estimates across data sources.

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JPMorgan launched JLTXX, a tokenized government money market fund, on Ethereum in May 2026. The fund grew to hundreds of millions in assets within a short window.

The DeFi gap

Only about 0.4% of the T-bill fund market cap is currently used in decentralized finance applications.

Put simply, almost all of that $13.5 billion is sitting still. Holders are buying the tokens and keeping them rather than plugging them into lending protocols, trading venues or collateral systems.

That stands in sharp contrast to yield and credit products. Those categories see considerably higher DeFi usage than their Treasury-backed counterparts.

Background: from niche to cash management tool

Tokenized funds are a modern take on traditional investment vehicles. They represent shares in money market and Treasury products as digital tokens on public blockchains.

The structure allows those shares to be transferred and settled without the usual web of intermediaries. Meanwhile, regulated firms still hold the underlying reserves.

T-bill tokens are increasingly treated as core infrastructure for managing cash on blockchains, not side projects.

What this means

The competitive picture is also worth watching. BlackRock, Circle, Ondo and now JPMorgan are all chasing the same pool of onchain cash, and their products sit within striking distance of one another in size.

Key things to monitor include whether T-bill funds extend their lead over yield strategies, how quickly newer entrants like JLTXX scale, and whether the 0.4% DeFi share starts to move.

Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.

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