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Tokenized Treasuries Hit $15.35 Billion Record as Rate Hike Odds Rise

Investors are choosing on-chain versions of Treasuries to earn clear, cash-like yields.

Overview

  • The on-chain market for U.S. Treasuries set a new high of $15.35 billion in value locked, topping the mid-April peak of $15.10 billion, according to rwa.xyz.
  • The move followed April inflation of 3.8% that raised the chance of a Federal Reserve rate hike and drew cash out of spot crypto and into yield products.
  • Tokenized Treasuries offered a seven-day average yield near 3.41%, a level that is easy for institutions to compare with money market funds.
  • Circle’s USYC led with about $2.9 billion, with BlackRock’s BUIDL near $2.58 billion and Fidelity, Franklin Templeton, and Ondo rounding out the top products.
  • BlackRock asked the OCC to treat tokenized Treasuries like traditional bonds for stablecoin reserves, a change that could boost demand as traders watch the next inflation report.