Ondo Finance has crossed $3 billion in total value locked across its tokenized U.S. Treasury products, with its flagship USDY token reaching $2.328 billion in TVL and overtaking BlackRock's BUIDL product at $2.204 billion.
The milestone places Ondo atop RWA.xyz's ranking of tokenized Treasury platforms. USDY accounts for the bulk of that total, followed by OUSG, Ondo's tokenized version of the iShares Core U.S. Aggregate Bond ETF, at $319 million, and Treasury-backed ETF tokens at smaller scale.
Ondo launched USDY in March 2024 as an onchain wrapper around short-duration U.S. Treasury bills and bonds. The token accrues yield directly to holders' wallets daily and trades permissionlessly on Ethereum, Solana and other chains. Unlike traditional Treasury funds, USDY can be used as collateral across decentralized finance protocols. Ondo says the token has become a building block for yield strategies in DeFi, with integrations across lending and money market platforms.
BlackRock's BUIDL, launched in August 2024, similarly tokenizes Treasury holdings on Ethereum and has drawn substantial institutional interest. The two products represent the vanguard of real-world asset tokenization, a category that combines on-chain infrastructure with custody and legal frameworks to bridge traditional finance into blockchain settlement.
Other players in tokenized Treasuries include Matrixport's MTC and Franklin Templeton's BENJI, though neither has reached Ondo's scale. The broader tokenized RWA market has grown to roughly $13 billion across all asset types as of October 2026, with government bonds and stablecoins forming the largest segments.
Ondo's $3 billion milestone arrived five months after the product crossed $1 billion TVL in May, representing a 200 percent increase over that interval. USDY's growth has accelerated alongside rising institutional demand for onchain yield infrastructure and regulatory clarity around tokenized securities in major jurisdictions.
Tokenized Treasuries offer the same underlying yield as traditional bills and bonds while adding composability in DeFi and faster settlement onchain. If Ondo sustains its growth rate from the past six months, the product could reach $5 billion within twelve months, though macro Treasury yields and stablecoin competition will shape actual trajectory.
