Ondo’s Tokenized Treasury Product Just Passed BlackRock’s BUIDL. Is ONDO Undervalued?

October 18, 2026 - 19:57

Ondo Finance's tokenized Treasury offering has moved ahead of BlackRock's competing fund in size, marking a notable shift in the market for tokenized real world assets. The Ondo US Dollar Yield token, known as USDY, now holds roughly $2.33 billion, edging past the approximately $2.2 billion held by BlackRock's BUIDL fund. The milestone puts Ondo at the front of a growing segment where traditional finance and blockchain based products increasingly overlap.

The achievement did not translate into price strength for the project's native token. Ondo's ONDO token dropped 9 percent during the week ending October 17, 2026, a move that stands out given the product's growth. The divergence has prompted questions about whether the token is undervalued relative to the adoption of the underlying platform, or whether the market is pricing in risks that the headline figures do not capture.

Tokenized Treasury products have drawn attention as a way to bring yield bearing traditional assets onto public blockchains. BlackRock's entry into the space gave the category added credibility, and Ondo's ability to surpass that fund suggests demand is spreading across multiple providers rather than concentrating in a single name. Still, the token's weekly decline shows that asset growth and token performance do not always move together, and traders appear to be weighing factors beyond the size of the USDY pool.

Whether ONDO is undervalued remains an open question. Supporters point to the product's expansion as evidence of real usage, while skeptics note that token prices can lag fundamentals for extended periods and that competition in the tokenized Treasury market is intensifying. For now, Ondo holds the larger fund, but the market's verdict on its token is far less settled.