What Is RWA Tokenization and Why Everyone Talks About Tokenized Treasuries

RWA tokenization is the issuance of digital tokens that represent rights to traditional assets (bonds, money-market funds, deposits). The hottest segment of 2025 is tokenized Treasuries/on-chain T-Bills: units in U.S. Treasury funds recorded on public blockchains.

By mid-2025, the total size of such instruments exceeded ~$7.4B and the trend kept accelerating.

In practice, an asset manager maintains the shareholder register on-chain (Ethereum, Stellar, etc.). After KYC/AML, buyers receive tokens that correspond to their fund units.

Key Players: From BlackRock (BUIDL) to Franklin OnChain (BENJI)

BlackRock USD Institutional Digital Liquidity Fund (BUIDL) — a tokenized liquidity fund on Ethereum launched with Securitize in March 2024, designed for qualified clients with institutional-level minimums.

Franklin OnChain U.S. Government Money Fund (BENJI) — a tokenized money-market fund (units registered on Stellar/Polygon). In 2025, Franklin also expanded in Europe via a Luxembourg structure. Access varies by country and is typically for professional/institutional investors.

Ondo/other tokenized-treasuries providers — private offerings for qualified investors (retail access is usually restricted by regulation).

Many on-chain T-Bills today target institutional/professional investors (minimums, status, KYC/AML). Retail access in the EU depends on jurisdiction and product wrapper.

EU Legal Framework: MiCA 2025, ESMA/EBA and the Role of Licensed CASP

MiCA (Markets in Crypto-Assets) applies to stablecoins (ART/EMT) from 30 June 2024 and fully to CASP from 30 December 2024. Passporting allows EU-wide activity after authorization in one member state.

In 2025, ESMA published final Guidelines/RTS/ITS on market abuse, staff knowledge & competence, and notification/disclosure forms — aligning supervisory practice.

EBA issued standards for ART/EMT: capital, liquidity, reporting and rules for use as a means of payment.

What it means for Europeans: It’s safer to buy tokenized T-Bills via MiCA-compliant providers (or equivalent EU/EEA regimes), with a clear fund jurisdiction (UCITS/AIF) and investor qualification rules. Retail investors typically access similar exposure via traditional UCITS funds; tokenized share classes remain mostly for professionals.

Yield & Costs: How to Read On-Chain T-Bills Yield and Calculate TCO

Tokenized cash/T-Bill funds reflect current T-Bill/repo rates. Exact yield depends on fund mandate (liquidity, duration, fees). Look at 7-day yield and/or the YTM of the underlying portfolio in issuer documents.

TCO (total cost of ownership) for an EU investor:

Fund fee (expense ratio/management fee)
FX spread/fees for EUR⇄USD if your account is in euros
Tokenization/custody/transfer costs (gas/provider)
Taxes: withholding on interest income and your domestic tax treatment

Shorter duration means lower NAV volatility, but potentially lower yield. Compare after-tax, after-fee returns — not just headline numbers.

While you wait for verification or a subscription window, you can park cash in Hexn fixed-income deposits with weekly payouts (up to 20% APY subject to terms and your risk profile). That reduces the “cost of waiting,” and payouts can feed your DCA into target products.

How to Buy Tokenized T-Bills as an EU Resident

Eligibility: are you retail, professional, or institutional? Many on-chain T-Bills are limited to pros/inst.
Jurisdiction/wrapper: UCITS (Lux/IE) vs AIF/Reg D, who is the administrator/depositary, where assets are held.
Provider/register: prospectus/key information, regular reports, portfolio disclosure (issuer website/NCA/exchange registers).
Tech platform: which chain (Ethereum/Stellar/Polygon), how KYC/AML and primary creation/redemption work.
Operational risks: wallet custody, permissions (allowances), recovery if access is lost, sanctions/banking limits on on/off-ramps.

RWA Crypto Risks 2025/2026: What to Consider

Legal status: the token is a record of entitlement/claim — not the bond itself. Always read the prospectus/agreements.

Custody & ops: losing wallet access doesn’t cancel off-chain processes; clarify right-reissuance/recovery procedures.

Liquidity: secondary trading of tokenized shares may be restricted by offering terms.

Taxes: EU residents face different interest/FX tax rules by country; consider source withholdings and reporting.

Who This Fits in the EU

Treasury cash management (pro/inst): need transparent on-chain register and faster settlement than legacy rails.
Crypto-native companies: streamlined on-chain treasury with “cash-like” yield (with compliance).
Professional private investors: an alternative to deposits/bonds where tokenized classes are available.

FAQ

Does MiCA already apply to these products in the EU?
Partially since 30 Jun 2024 for stablecoins and fully for CASP from 30 Dec 2024; in 2025 ESMA/EBA finalized key standards. This improves the framework but doesn’t remove investor-type restrictions.

Can an EU retail investor buy on-chain T-Bills?
It depends on jurisdiction and wrapper. Many tokenized share classes are for pros/institutions; retail often uses traditional UCITS without token registers. Check the prospectus and country availability.

Where to find reliable info on a fund?
Issuer sites (prospectus/reports) and NCA/exchange registers (e.g., Franklin/BlackRock; for BUIDL see Securitize/BlackRock releases; for Franklin see fund pages/prospectuses).

Conclusion

RWA tokenization is no longer theory: tokenized treasuries / on-chain T-Bills form a growing asset class backed by major managers. For Europeans, the key forks are access (investor status, UCITS/AIF), regulatory clarity (MiCA-compliant providers) and TCO after taxes and fees. Assess the legal structure, KYC/record-keeping, and real after-tax yield — that’s how “tokenized bonds” become a practical, manageable tool.

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