According to ME News, on August 4 (UTC+8), market research firm The Kobeissi Letter stated that investors are accelerating their allocation to tokenized U.S. Treasuries, driving continued growth in the on-chain Treasury market. Data shows that the total market capitalization of on-chain U.S. Treasury funds has reached a new all-time high of $16.2 billion, representing a roughly 77% increase since the beginning of the year. Kobeissi noted that market growth is primarily fueled by demand for on-chain yields. An increasing number of users are using tokenized U.S. Treasuries as collateral to borrow stablecoins and deploy capital into DeFi strategies to enhance capital efficiency. Some on-chain lending platforms support looping strategies, allowing users to repeatedly pledge tokenized Treasuries, borrow stablecoins, and reinvest them into the market—some strategies achieving annualized yields exceeding 10%. Kobeissi believes that as traditional financial assets continue to migrate on-chain, tokenized U.S. Treasuries are becoming a critical infrastructure for on-chain finance and are poised to become a key component of future on-chain capital markets. (Source: PANews)
Chain-Based U.S. Treasury Market Reaches $16.2 Billion, Driven by DeFi Yield Strategies
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Summary
DeFi exploit risks are rising as the chain-based U.S. Treasury market reaches $16.2 billion, a 77% increase since January. Investors are using tokenized U.S. Treasuries as collateral to borrow stablecoins and pursue DeFi strategies. Some platforms offer looping mechanisms with annualized returns exceeding 10%. Market developments indicate that tokenized Treasuries are now critical infrastructure for on-chain finance.
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