Tokenized Funds Blow Past $37.8B as T-Bill Products Take the Crown

Tokenized funds have climbed to a $37.8 billion market capitalization, per Token Terminal data recorded in early November 2026. That marks a gain of roughly 941% since late 2023, when the entire sector sat at just $3 billion to $4 billion. In about three years, the category has grown roughly tenfold.

US Treasury bill funds are now the biggest slice of that pie, holding $13.5 billion. They passed yield strategies around April 2026 to take the top spot, flipping what had been the dominant category. Yield strategies sit at $11.4 billion, with credit funds at $8.3 billion, according to Token Terminal's breakdown.

The heavyweights are bunched tightly together. Ondo Finance's USDY is valued between $2.1 billion and $2.4 billion, while Circle's USYC lands 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 wide spreads reflect differing estimates across data sources. JPMorgan jumped in too, launching its JLTXX tokenized government money market fund on Ethereum in May 2026 and growing it to hundreds of millions in assets within a short window.

Here's the catch: only about 0.4% of the T-bill fund market cap is actually plugged into decentralized finance. Practically all of that $13.5 billion is sitting still — holders buy the tokens and park them rather than using them as collateral or feeding them into lending protocols and trading venues. Yield and credit products see far heavier DeFi usage by comparison.

The pull is institutional appetite for onchain cash management and Treasury yield access. Tokenized funds wrap money market and Treasury products into digital tokens on public blockchains, letting shares move and settle without the usual chain of intermediaries while regulated firms keep the underlying reserves. Next up: whether T-bill funds stretch their lead, how fast JLTXX scales, and whether that 0.4% DeFi share budges. BlackRock, Circle, Ondo and JPMorgan are all fishing the same onchain cash pool, and their products are separated by slim margins.