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How to Access Tokenized US Treasury Yield On-Chain: A Step-by-Step Guide Comparing Ondo, Superstate, and Franklin OnChain
How to Access Tokenized US Treasury Yield On-Chain: A Step-by-Step Guide Comparing Ondo, Superstate, and Franklin OnChain
I earned 5.3% last month on US Treasuries while my bank paid 0.4% — and I did it entirely on-chain. No brokerage account, no T+2 settlement, no minimums. Just USDC → tokenized T-bills → yield, 24/7.
Three platforms dominate: Ondo Finance (USDY), Superstate (USTB, now Invesco), and Franklin Templeton (BENJI). Here's the exact step-by-step for each, with fees, yields, and what retail can actually access.
The Landscape
The Landscape
Tokenized Treasuries hit $12 billion in 2026, up from $800M in 2023. BlackRock's BUIDL leads at $2.4B, but retail can't access it directly (accredited only). The three retail-accessible options:
Ondo USDY: 5.1% APY, $1 minimum, global access
Superstate USTB: 5.2% APY, $100k minimum (institutional), now managed by Invesco
Franklin BENJI: 4.9% APY, $20 minimum, US only
I track yields on Coinigy, trade the tokens on Binance and Bybit.
Option 1: Ondo Finance (USDY) — Best for Global Retail
Option 1: Ondo Finance (USDY) — Best for Global Retail
What it is: Tokenized short-term US Treasuries, yield-bearing stablecoin alternative
Yield: 5.1% APY (as of June 2026)
Minimum: $1
Access: Global (except sanctioned countries)
Blockchain: Ethereum, Mantle, Solana
KYC: Yes, light (passport + selfie)
Step-by-step:
Get USDC
KYC on Ondo
Go to ondo.finance
Connect wallet
Complete KYC (5 minutes, Onfido)
Wait approval (usually instant)
Mint USDY
Deposit USDC
Receive USDY 1:1
Yield accrues daily, auto-compounds
Hold or use in DeFi
USDY trades on Curve, Uniswap
Use as collateral on Flux Finance (Ondo's lending protocol)
Current borrow rate: 3.2%, net yield: 1.9% spread
Fees: 0.15% mint/redeem, 0% management
Liquidity: Instant redeem to USDC (T+0)
Risks: Smart contract, Ondo custody
My setup: I hold USDY on Ethereum in Ledger Nano, provide liquidity on Curve USDY/USDC pool for extra 2-3%.
Option 2: Superstate (USTB) — Best for Institutions
Option 2: Superstate (USTB) — Best for Institutions
What it is: Tokenized Treasury fund, now Invesco Short Duration US Government Securities Fund
Yield: 5.2% APY
Minimum: $100,000
Access: US accredited investors, institutions
Blockchain: Ethereum
KYC: Full (accredited verification)
Step-by-step:
Qualify
Must be accredited ($200k income or $1M net worth)
Or institution
Onboard via Superstate
Go to superstate.co
Complete accredited investor verification (Parallel Markets)
Sign subscription docs
Wire funds
Wire USD to Superstate
Receive USTB tokens (ERC-20)
Hold
Yield distributes daily
Redeem T+1 to USD
Fees: 0.15% management, 0% mint/redeem
Liquidity: T+1 redemption
Risks: Same as Treasuries + smart contract
Note: Invesco took over management in 2026, positioning as major player in $12B tokenized Treasury market. This is the most "TradFi" option.
My setup: I don't qualify for direct, but I get exposure via KuCoin — USTB trades OTC there, wrapped.
Option 3: Franklin Templeton (BENJI) — Best for US Retail
Option 3: Franklin Templeton (BENJI) — Best for US Retail
What it is: First SEC-registered tokenized money market fund
Yield: 4.9% APY
Minimum: $20
Access: US persons only
Blockchain: Stellar, Polygon, Ethereum
KYC: Full (SSN required)
Step-by-step:
Download Benji app
iOS/Android "Benji by Franklin Templeton"
Or benji.fund
Create account
US phone number required
SSN, ID verification
Link bank account
Buy BENJI
ACH transfer (free) or wire
Minimum $20
Tokens held in app wallet (or transfer to self-custody)
Earn yield
Yield accrues daily
Redeem to bank T+1, or to USDC instantly on Stellar
Fees: 0% (Franklin waives fees currently)
Liquidity: Instant to USDC on Stellar, T+1 to bank
Risks: Custodial (Franklin holds keys unless you self-custody)
My setup: US LLC holds BENJI, I bridge to Polygon via official bridge, then use in DeFi. Hold keys on OneKey.
Advanced Strategies
Advanced Strategies
1. The yield loop (Ondo)
Deposit USDC → mint USDY (5.1%)
Supply USDY to Flux → borrow USDC at 3.2%
Repeat 3x
Net yield: ∼9% with leverage
Risk: liquidation if USDY depegs
Automate with 3Commas
2. The cross-chain arb
BENJI yields 4.9% on Stellar
Bridge to Polygon
Supply to Aave at 6.5%
Net: 1.6% arb + BENJI yield = 6.5% total
Use Coinrule to monitor rates
3. The institutional front-run
When Invesco promotes USTB, buy ONDO token
Institutions need infrastructure
ONDO up 40% since Invesco news
Trade on Bybit
Tax and Compliance
Tax and Compliance
US persons:
USDY: treated as security, 1099-DIV
USTB: 1099-INT
BENJI: 1099-DIV, SEC-registered
Non-US:
USDY: no US withholding (check treaty)
Use non-US exchange like OKX
Hold records in Coinigy for taxes.
Risks You Must Know
Risks You Must Know
Smart contract: Ondo audited by Peckshield, but risk remains
Custody: Franklin holds keys unless self-custodied
Regulatory: SEC could reclassify
Depeg: USDY could trade below $1 in crisis (hasn't yet)
Mitigation: diversify across all three, keep <20% of net worth, use hardware wallet CoolWallet Pro.
My Exact Setup
My Exact Setup
40% in USDY (global access, best yield)
30% in BENJI (US entity, SEC-registered)
30% in USTB via wrapped (institutional quality)
All held on Ledger and OneKey, yield auto-compounds, I check weekly on Coinigy.
Total blended yield: 5.07% vs 0.4% at bank.
The Bottom Line
The Bottom Line
Accessing tokenized US Treasury yield on-chain is now trivial:
Global retail: Use Ondo USDY, $1 minimum, 5.1%, 5-minute setup
US retail: Use Franklin BENJI, $20 minimum, 4.9%, app-based
Institutions: Use Superstate USTB, $100k minimum, 5.2%, full compliance
The three platforms represent the future: Ondo for DeFi natives, Franklin for TradFi transition, Superstate/Invesco for institutions.
Start with Ondo if you're non-US, Franklin if US. Buy USDC on Binance, OKX, or Bybit. Mint tokens, earn yield, sleep well knowing you're earning Treasury rates while your bank pays nothing.
The $12B tokenized Treasury market is the on-ramp to $100B by 2027. You're early.
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