Tokenized Fund

A tokenized fund is an ordinary investment fund - a money-market fund, a credit fund, a Treasury fund - whose shares are issued and tracked as tokens on a blockchain. You still own a regulated fund interest; the token is simply the modern record of that unit, and it settles and transfers on-chain.

This is one of the largest and most proven forms of real-world asset. BlackRock's BUIDL and Franklin Templeton's on-chain money fund are tokenized funds holding US Treasuries and cash; together with peers they account for billions of dollars of tokenized Treasuries outstanding by 2025. Investors earn the fund's yield, paid on-chain, and can transfer units among approved holders around the clock.

The structure stacks like this:

• A real fund holds the assets and has a NAV - the per-share value, struck daily.
• Fund shares are issued as tokenized securities, restricted to whitelisted, KYC'd investors.
• Yield and redemptions are handled on-chain, often daily, instead of through manual fund administration.

The advantages are operational: faster settlement, programmable distributions, 24/7 transfers, and composability with other on-chain systems. The constraints are the fund's - eligibility rules, minimums, and the fact that your unit is worth its NAV, not whatever a thin secondary market might quote.

A tokenized fund is not a yield-bearing stablecoin and not a crypto token - it is a fund, with a manager, a mandate, and a regulator.

Source: rwa.xyz, as of 2026.