On-chain funds pour into tokenized U.S. Treasuries as market cap hits $16.2B

On-chain investor demand for tokenized U.S. Treasuries is rising სწრაფly, pushing the market capitalization of on-chain U.S. Treasury funds to a record $16.2 billion, up 77% from the start of the year, The Kobeissi Letter said. A key driver of the growth was an increase in investors seeking to generate on-chain yield by using short-term U.S. Treasury bills as collateral. Investors are actively depositing tokenized U.S. Treasuries, borrowing stablecoins against them, and deploying those funds into DeFi protocols.