Tokenized US Treasuries Hit Record $16.2B Market Cap Amid Yield Demand
Total onchain U.S. Treasury funds have surged 77% year-to-date to a record $16.2 billion, fueled by investors using tokenized bills as collateral to earn double-digit yields in DeFi.
Onchain Treasury funds reached a record market capitalization of $16.2 billion, marking a 77% increase since the start of the year. The rapid expansion reflects a growing appetite for earning yield onchain through U.S. Treasury Bills.
The surge is largely driven by users depositing tokenized Treasuries as collateral, borrowing stablecoins against those positions, and then deploying the borrowed capital into decentralized finance strategies. This approach enables participants to multiply their exposure and capture additional yield.
Platforms like Jupiter allow these collateralized positions to be “looped,” where capital is repeatedly borrowed and redeployed. This mechanism can push annualized yields above 10% in certain strategies, according to market observers.
Tokenized Treasuries are increasingly seen as a foundational element of onchain finance, bridging traditional safe-haven assets with DeFi yield opportunities.
Source: The Kobeissi Letter