Aave V3 currently accounts for 64.1% of the tokenized U.S. Treasury market deployed across DeFi protocols, according to a Techub report citing CryptoBriefing. Even with that lead, actual onchain use remains limited: only 0.7% of the broader tokenized Treasury market is being actively used in decentralized lending protocols.
The report said the tokenized U.S. Treasury market has reached about $16.19 billion in total size. Among individual products, Circle’s USYC leads with $3 billion, followed by BlackRock’s BUIDL at $2.7 billion.
Market analysts said the low level of DeFi deployment is tied to the yield profile of the assets themselves. Because tokenized Treasuries already offer competitive returns, institutions have less incentive to place them into DeFi protocols and take on additional smart contract risk. That dynamic, the report noted, has kept real utilization in decentralized lending relatively low despite continued growth in the tokenized Treasury segment.
Aave V3 currently holds a 64.1% share of tokenized U.S. Treasuries used across DeFi protocols, according to Techub, which cited CryptoBriefing.
Even so, only 0.7% of the entire tokenized Treasury market is being actively used in decentralized lending protocols, showing that real deployment remains limited.
Tokenized Treasury market size
The total tokenized U.S. Treasury market has reached about $16.19 billion. Within that market, Circle’s USYC leads at $3 billion, followed by BlackRock’s BUIDL at $2.7 billion.
Why utilization remains low
Market analysts said tokenized Treasuries already provide competitive yields on their own. As a result, institutions have limited incentive to deposit those assets into DeFi protocols while taking on additional smart contract risk, keeping actual usage in decentralized lending relatively low.
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