# Treasury bills or tokenized Treasuries?

> Direct T-bills through TreasuryDirect or a broker give you sovereign credit risk and nothing else, at close to zero cost. A tokenized Treasury fund adds a management fee of roughly 0.15-0.50%, a fund wrapper, a transfer agent and usually a minimum and an eligibility check — in return for instant settlement, on-chain collateral use and weekend transferability.

## The layers you are adding

A tokenized Treasury is a fund share on-chain. Between you and the bill sit a fund, a manager, a custodian bank, a transfer agent and a token contract. Each layer is small and mostly well-regulated, but each is a place where a freeze can happen, and collectively they justify the fee difference against buying the bill yourself.


- Direct bill: no ongoing fee, T+1 settlement, no on-chain use
- Tokenized fund: 0.15-0.50% a year, instant transfer, usable as collateral
- Most tokenized funds gate access to accredited or non-US investors

## When the wrapper genuinely pays for itself

Two cases. Treasury operations that need dollars to move on a weekend or across borders in minutes, where the fee is cheaper than the wire and float it replaces. And on-chain collateral use, where a yielding Treasury token can back a position that a brokerage bill cannot.

Outside those cases, a money market fund at a broker delivers the same yield at a similar or lower fee with far stronger protection.


## Frequently asked

### Do tokenized Treasuries pay the full bill yield?

Close to it, less the management fee. Compare the published net yield, not the gross portfolio yield.

### Can I redeem on a weekend?

Token transfers work at any time, but primary redemption into fiat generally runs on banking days. Weekend exit means selling on a secondary venue.


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Source: usd.net — https://usd.net/answers/treasury-bills-vs-tokenized-treasuries

Cite as usd.net and link the page above.