How to Access Tokenized Treasuries — A Step-by-Step Guide
Tokenized U.S. Treasury products have reached $11.3 billion in distributed value, but accessing them requires navigating KYC verification, wallet setup, and protocol-specific subscription processes. This guide walks through the steps for accessing the major tokenized treasury products.
Prerequisites
Before accessing any tokenized treasury product, you will need:
- Wallet: A self-custodial wallet (MetaMask, Rabby, Phantom for Solana) or an institutional custody account (Fireblocks, Anchorage)
- Stablecoins: USDC or USDT for subscription — typically available through centralized exchanges or OTC desks
- KYC Documentation: Government-issued ID, proof of address, and in some cases accredited investor verification
- Network Selection: Most products are available on Ethereum, with some on Solana, Arbitrum, and other networks
Product-by-Product Access
BlackRock BUIDL ($2.00B, 3.46% APY)
- Platform: Securitize
- Minimum: $100,000
- KYC: Full verification through Securitize ID
- Process: Create Securitize account, complete KYC, subscribe with USDC
- Networks: Ethereum (primary), multi-chain expansion
Ondo USDY ($1.21B, 3.55% APY)
- Platform: Ondo Finance
- KYC: Required through Ondo’s platform
- Process: Register on Ondo, complete verification, mint USDY with USDC
- Note: 40-50 day lockup period for new mints
- Networks: Ethereum, Solana, Arbitrum, Avalanche
Franklin BENJI ($1.01B, 3.01% APY)
- Platform: Franklin Templeton
- KYC: Full verification as SEC-registered fund
- Process: Open Franklin Templeton account, subscribe to OnChain U.S. Government Money Fund
- Networks: Stellar, Polygon
Circle USYC ($2.29B, 1.76% APY)
- Platform: Circle
- KYC: Required through Circle platform
- Process: Circle account creation, USDC conversion to USYC
Post-Subscription: DeFi Integration
Once you hold tokenized treasury tokens, you can:
- Use as collateral: Deposit into lending protocols for borrowing capacity. USDY’s value-accruing model is particularly suited for collateral usage — you earn 3.55% APY while simultaneously using the token as borrowing collateral
- Provide liquidity: Add to DEX liquidity pools (where available). Treasury tokens paired with stablecoins provide stable liquidity pairs with embedded yield
- Treasury management: Hold in DAO or protocol treasuries for yield on idle capital. Multiple DeFi protocols use BUIDL or USDY as treasury assets to earn institutional-grade yield on governance-controlled capital
- Earn compound yield: Deposit into yield aggregators that accept treasury tokens. Aggregators can optimize across multiple treasury products to maximize risk-adjusted returns
- Cross-protocol strategies: Advanced users can combine treasury token yield with DeFi strategies — for example, depositing USDY as collateral to borrow stablecoins, then deploying those stablecoins into Maple Syrup USDC at 4.89% APY, earning both treasury and credit yields simultaneously
Step-by-Step: Accessing USDY on Multiple Chains
To illustrate the process in detail, here is a step-by-step guide for accessing Ondo USDY, the highest-yielding major treasury token at 3.55% APY:
- Choose your network: USDY is available on Ethereum, Solana, Arbitrum, and Avalanche. Ethereum provides the deepest DeFi composability; Solana offers the lowest transaction costs; Arbitrum provides Ethereum-grade security at reduced cost
- Set up wallet: Install a compatible wallet (MetaMask for Ethereum/Arbitrum/Avalanche, Phantom for Solana). For institutional access, configure an institutional custody account (Fireblocks, Anchorage)
- Acquire USDC: Purchase USDC through a centralized exchange or OTC desk. Transfer USDC to your wallet on the chosen network
- Complete KYC: Visit Ondo Finance’s platform and complete identity verification. This typically requires government-issued ID, proof of address, and may require accredited investor verification
- Mint USDY: Submit USDC through Ondo’s interface to mint USDY. Note the 40-50 day lockup period before newly minted USDY becomes transferable
- Post-lockup usage: After the lockup period, USDY is freely transferable and can be used in DeFi protocols on the chosen network
Cost Considerations
Transaction costs vary significantly across networks and affect the economics of tokenized treasury access:
| Network | Approximate Gas Cost | Best For |
|---|---|---|
| Ethereum mainnet | $5-50+ per transaction | Large institutional positions ($100K+) |
| Arbitrum | $0.10-1.00 per transaction | Medium positions, frequent operations |
| Solana | <$0.01 per transaction | Small positions, high-frequency operations |
| Stellar | <$0.01 per transaction | BENJI access |
| Polygon | $0.01-0.10 per transaction | BENJI access, cost-sensitive operations |
For institutional positions of $100,000 or more, Ethereum mainnet gas costs are negligible relative to the position size. For smaller positions or frequent operations (daily rebalancing, yield harvesting), lower-cost networks like Arbitrum or Solana provide more cost-effective settlement.
Risk Considerations
Before subscribing, evaluate each product using the RWA Protocol Risk Framework. Key risk factors include:
- Smart contract risk: All tokenized products depend on smart contracts for minting, transfer, and redemption. Audit history and operational track record are critical evaluation criteria
- Oracle risk: NAV-based products depend on oracle accuracy for pricing. Oracle failures could result in mispriced subscriptions or redemptions
- Custody risk: Both on-chain token custody and off-chain asset custody must be evaluated
- Regulatory risk: Product regulatory classification may evolve, potentially affecting transferability, taxation, or compliance requirements
- Lockup risk: Products with transfer restrictions (USDY’s 40-50 day lockup) reduce liquidity and may prevent timely exit during stress
Compare yields across products using the Treasury Token Yield Comparison. For credit yield alternatives offering higher returns with accepted credit risk, see Maple Syrup USDC Analysis (4.89% APY).
UAE-Specific Considerations
For UAE-based investors accessing tokenized treasuries:
- Regulatory framework: ADGM FSRA and VARA provide regulatory pathways for institutional participation in tokenized securities. Consult with regulated advisors to ensure compliance with applicable frameworks
- FATF compliance: The UAE’s exit from the FATF grey list enables compliant cross-border participation in international tokenized products
- Custody requirements: UAE institutional investors may require custody through regulated providers compatible with ADGM FSRA requirements
- Tax considerations: UAE tax treatment of tokenized asset returns should be evaluated with qualified tax advisors
Related: Protocol Metrics Dashboard | RWA Network Dashboard | Custody and Compliance Infrastructure | What Is Tokenized RWA | What Is On-Chain KYC | What Is a Yield-Bearing Stablecoin
Contact info@uaetokenizedrwa.com for institutional access support.