Tokenized funds have reached a market capitalization of $37.8 billion, according to data from Token Terminal recorded as of early November 2026. That figure represents an increase of approximately 941% since late 2023, when the entire sector was worth only around $3 billion to $4 billion. The category has grown roughly tenfold in about three years.
T-bill funds take the top spot
The largest driver of that growth is U.S. Treasury bill funds, which now lead the tokenized fund market at $13.5 billion. Token Terminal breaks the market into several categories: T-bill funds at $13.5 billion, yield strategies at $11.4 billion, and credit funds at $8.3 billion.
The 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
Several major products make up the tokenized fund landscape, with estimates varying across data sources:
- 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.
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. In practice, 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, which see considerably higher DeFi usage than their Treasury-backed counterparts.
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, while 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.
