Onchain market for tokenized U.S. Treasuries hits a record $16.2 billion as investors tap DeFi for higher returns
AI Market Summary
Onchain tokenized U.S. Treasury funds hit a record $16.2B market cap (+77% YTD), highlighting accelerating adoption of yield-bearing real-world assets in DeFi. Investors are using tokenized Treasuries as collateral to borrow stablecoins and loop into DeFi strategies, improving capital efficiency and deepening liquidity. The trend supports broader onchain market infrastructure growth, potentially increasing institutional participation and reinforcing demand for crypto-native lending and collateral systems.
Impact level
● Medium
Affected assets
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AI Insight · BTC/USDTAI Insight
▲ Bullish
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ChainCatcher cited market research firm The Kobeissi Letter as saying investor allocations to tokenized U.S. Treasuries are accelerating, extending the expansion of the onchain Treasury market. Data shows the total market capitalization of onchain U.S. Treasury funds has climbed to a fresh all-time high of $16.2 billion, up about 77% since the start of the year.
Kobeissi attributed the growth largely to demand for onchain yield. More users are posting tokenized Treasuries as collateral to borrow stablecoins and deploy the proceeds into DeFi strategies to improve capital efficiency. Some onchain lending platforms enable looping strategies, where users repeatedly pledge tokenized Treasuries, borrow stablecoins, and reinvest—certain approaches reportedly generating annualized returns above 10%.
Kobeissi said that as traditional financial assets continue to move onchain, tokenized U.S. Treasuries are increasingly becoming core infrastructure for onchain finance and could play a central role in future onchain capital markets.
