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Tokenized US Treasury market tops $16 billion as on-chain yield demand rises

Tokenized US Treasury market tops $16 billion as on-chain yield demand rises

The market has reached a record $16.2 billion, with investors increasingly using tokenized government debt as collateral to borrow stablecoins and pursue DeFi yield.

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Fact Check
The core claims are directly corroborated by the primary cited data provider and multiple independent reports. The official Token Terminal post confirms the $15.2B figure, 18 chains, and the Ethereum (43.2%) plus BNB Chain (31.5%) concentration. CryptoBriefing confirms surpassing $15B and the $16.16B August sector total per rwa.xyz. CoinNess and PANews independently repeat consistent figures. Minor wording variation (the headline $15B milestone was first reached in May 2026 per CoinDesk, while August figures show $15.2B/$16.16B) does not contradict the claim, which references the current August total.
Summary

Tokenized U.S. Treasuries have climbed to a record $16.2 billion, up 77% from the start of the year, as investors look for on-chain yield and new ways to use short-term government debt inside decentralized finance, The Kobeissi Letter said. A key driver has been demand for tokenized Treasury bills as collateral, allowing holders to borrow stablecoins and deploy the funds into DeFi protocols. The existing record said tokenized Treasuries had earlier reached $15.2 billion across 18 chains, with Ethereum accounting for 43.2%, BNB Chain for 31.5% and Stellar for 7.5%. A separate rwa.xyz snapshot put the market at $16.16 billion across 85 assets and about 62,948 holders as of Aug. 3. Circle’s USYC, BlackRock’s BUIDL, Franklin Templeton’s BENJI and iBENJI suite, and Ondo’s USDY remained among the largest products. The growth has also been tied to looping strategies, where users repeatedly pledge tokenized Treasury exposure, borrow stablecoins and redeploy the proceeds. In some cases, those structures can lift annualized yields above 10%, reinforcing the role of tokenized U.S. Treasuries in on-chain capital markets.

Terms & Concepts
  • Tokenized US Treasuries: Blockchain-based tokens that represent exposure to U.S. government debt.
  • DeFi: Decentralized finance applications used for lending, borrowing and trading without traditional intermediaries.
  • Looping strategies: Leveraged borrowing structures that reuse collateral proceeds to increase yield or exposure.