The Kobeissi Letter said on-chain investors are increasing their exposure to tokenized U.S. Treasuries, with the total market value of on-chain U.S. Treasury funds rising to a record $16.2 billion. The figure represents growth of about 77% since the start of the year, according to the market research firm.
Kobeissi said the expansion has been driven by demand for yield opportunities on-chain. In its description, more users are treating tokenized Treasuries as collateral, borrowing stablecoins against those positions, and then deploying the borrowed funds into decentralized finance, or DeFi, strategies to seek additional returns.
The firm also noted that some on-chain platforms support looping through lending mechanisms. In that structure, users repeatedly pledge assets, borrow stablecoins, and redeploy capital. Kobeissi said that in some cases, the process can lift annualized yields to more than 10%.
As more traditional financial assets move onto blockchain rails, Kobeissi said tokenized U.S. Treasuries are becoming a more important part of on-chain financial infrastructure and could develop into one of the core assets in future on-chain capital markets.
Odaily reported that market research firm The Kobeissi Letter said on-chain investors are stepping up allocations to tokenized U.S. Treasuries. Data cited by the firm showed the total market capitalization of on-chain U.S. Treasury funds has climbed to a record $16.2 billion, up about 77% from the beginning of the year.
Yield demand is driving the increase
Kobeissi said the growth is mainly being driven by investors seeking yield opportunities on-chain. More users are using tokenized U.S. Treasuries as collateral, borrowing stablecoins against those holdings, and then deploying the capital into DeFi strategies to earn additional yield.
Some platforms allow looping through lending
According to Kobeissi, some on-chain platforms support looping through lending mechanisms. In practice, that means users repeatedly post collateral, borrow stablecoins, and redeploy the funds. In some cases, this structure can push annualized returns above 10%.
Tokenized Treasuries are taking a larger place in on-chain finance
As traditional financial assets continue to move on-chain, tokenized U.S. Treasuries are becoming an important part of on-chain financial infrastructure, Kobeissi said. The firm added that they could become one of the core assets in future on-chain capital markets.
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