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Tokenised assets

Funds and government debt recorded on a blockchain.

4 minChecked 4 October 20265 sources

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The fundHolds US government debt, off the blockchain
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Step 1 of 5

A fund holds ordinary assets

A fund manager buys ordinary assets, such as short-term US government debt, and holds them in the usual way, off the blockchain.

  1. The fundHolds US government debt, off the blockchain

    Step 1 of 5

    A fund holds ordinary assets

    A fund manager buys ordinary assets, such as short-term US government debt, and holds them in the usual way, off the blockchain.

  2. The fundHolds US government debt, off the blockchain
    Each token: one share in the fundRecorded on a blockchain
    ExamplesBlackRock's BUIDL, Circle's USYC

    Step 2 of 5

    It issues tokens

    The fund issues tokens on a blockchain, each recording a share in the fund. Examples include BlackRock's BUIDL and Circle's USYC.

  3. The fundHolds US government debt, off the blockchain
    Approved wallet A
    Approved wallet B
    Transfer goes throughRecorded on the blockchain

    Step 3 of 5

    Tokens move between approved wallets

    The tokens circulate on public blockchains, but only between wallets the issuer has approved. Try it below.

    Try it

    Send a token to

    The transfer goes through.

  4. The fundHolds US government debt, off the blockchain
    About $14.8 billionTokenised US government debt, 4 Oct 2026
    About $295 billionStablecoins on the same tracker
    UK digital giltFirst issue due by the end of March 2027

    Step 4 of 5

    Real, but still small

    Tokenised US government debt was worth about $14.8 billion on 4 October 2026, against about $295 billion of stablecoins on the same tracker. In the UK, the first digital gilt is due by the end of March 2027.

  5. The fundHolds US government debt, off the blockchain
    Not open to everyoneUSYC: non-US persons only, $100,000 minimum

    Step 5 of 5

    What can go wrong

    A token is only as good as the issuer and the assets behind it. Many tokenised funds are not open to the public: USYC, for example, is only for non-US persons, with a $100,000 minimum. Check who is allowed to buy before believing an offer.

Quick check

Did it stick?

2 questions. Get them right to complete the lesson.

Question 1

Question 1 of 2

Where are the fund's actual assets held?

Question 2

Question 2 of 2

Can tokenised fund shares go to any wallet?

Sources

Checked 4 October 2026
  1. The rise of tokenised money market fundsBank for International Settlements (Bulletin 115)
    • The tokens circulate on public blockchains, but only between wallets the issuer has approved.
    • Tokenised funds carry the risks of the fund behind them.
  2. USYCCircle
    • A fund manager buys ordinary assets, such as short-term US government debt.
    • The fund issues tokens on a blockchain, each recording a share in the fund.
    • Circle's USYC is an example: each token is a share in a fund holding short-term US government debt.
    • Many tokenised funds are not open to the public: USYC, for example, is only for non-US persons, with a $100,000 minimum.
  3. Tokenized Treasuriesrwa.xyz
    • BlackRock's BUIDL is another tokenised US Treasury fund.
    • Tokenised US government debt was worth about $14.8 billion on 4 October 2026.
  4. Tokenized real-world assets overviewrwa.xyz
    • On the same tracker, stablecoins were worth about $295 billion that day.
  5. Update on the digital gilt instrument (DIGIT) pilot issuanceHM Treasury
    • In the UK, the first digital gilt is due by the end of March 2027.

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