Kobeissi: Tokenized U.S. Treasury Market on-chain Rises to $16.2 Billion, Investors Leverage DeFi to Amplify Yields

Odaily News: Market research firm The Kobeissi Letter reports that on-chain investors are accelerating their allocation to tokenized U.S. Treasuries. Data shows that the total market value of on-chain U.S. Treasury funds has reached a new all-time high of $16.2 billion, representing a growth of approximately 77% since the start of the year.

Kobeissi attributes this growth primarily to investors seeking on-chain yield opportunities. An increasing number of users are using tokenized Treasuries as collateral to borrow stablecoins, then deploying those funds into DeFi strategies to capture additional returns. Some on-chain platforms support looping mechanisms through lending protocols, where users repeatedly pledge assets, borrow stablecoins, and redeploy capital, which in some cases can boost annualized yields to over 10%.

As traditional financial assets continue to migrate on-chain, tokenized U.S. Treasuries are becoming a key component of on-chain financial infrastructure and could emerge as one of the core assets in the future on-chain capital market.