# Should I buy T-bills on TreasuryDirect or hold a tokenized Treasury fund?

> If the money is going to sit still, buy bills directly on TreasuryDirect: no fee, no intermediary, the full auction yield and state tax exemption. Pay the 0.15–0.50% for a tokenized Treasury fund only when you need dollars that move at any hour, cross borders, or work as on-chain collateral — that mobility is the entire product.

## What each layer adds

A bill bought on TreasuryDirect is a direct obligation of the US Treasury registered in your name. There is nothing between you and the sovereign. A tokenized Treasury fund inserts a fund, a manager, a custodian, a transfer agent and a smart contract — each adding an operational failure mode that the direct bill does not have.

In exchange you get something the bill cannot do: transfer instantly, at 3am, to a counterparty on another continent, and post it as collateral in an on-chain market.


- TreasuryDirect: 0% fee, sovereign-only risk, $100 minimum, no state or local income tax on interest
- Tokenized funds: 0.15–0.50% a year, daily NAV, instant transfer, collateral use
- Eligibility differs sharply: TreasuryDirect needs an SSN and US bank; many funds exclude US retail

## The liquidity difference cuts both ways

TreasuryDirect holds cannot be sold in place — exiting before maturity means transferring the security to a broker, which takes days. Tokenized funds transfer in seconds on the secondary market, but primary redemption still settles on banking days, so the 24/7 claim applies to moving the token, not to converting it to bank dollars.


## Compare net yield, not gross

Fund marketing often quotes the portfolio's gross yield. What you receive is that minus the management fee. Against a direct bill purchase at zero cost, the fee is the whole difference — so always read the published net yield and subtract it from the equivalent bill yield before deciding.


## Frequently asked

### Is a tokenized Treasury safer than a stablecoin?

Structurally, usually yes — it is a regulated fund with a stated NAV and daily reporting rather than an issuer liability. It is also less liquid and more often access-gated.

### Can non-US investors use TreasuryDirect?

Generally no. It requires a US taxpayer identification number and a US bank account, which is precisely the gap tokenized funds and Treasury ETFs fill.


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

Cite as usd.net and link the page above.