ChainCatcher reports that market research firm The Kobeissi Letter states investors are accelerating their allocation to tokenized U.S. Treasuries, driving continued growth in the on-chain Treasury market. Data shows 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 notes that market growth is primarily fueled by demand for on-chain yields. An increasing number of users are using tokenized 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 in 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 may emerge as a key component of future on-chain capital markets.
Chain on the U.S. Treasury market reaches $16.2 billion as investors use DeFi to enhance returns.
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Summary
On-chain data shows the U.S. Treasury market has reached $16.2 billion, a 77% increase since January. Investors are using tokenized Treasuries as collateral to borrow stablecoins and deploy them into DeFi strategies. Some platforms enable looping strategies with annual returns exceeding 10%. Market developments highlight the growing role of tokenized U.S. Treasuries as essential on-chain infrastructure.
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