Tokenized Treasury assets have reached a new milestone, exceeding $8.6 billion in value. This surge marks a significant shift as these instruments transition from passive yield strategies to active collateral use. Major players like Bybit and Deribit are now incorporating tokenized money market funds (MMFs) for margin trading and lending, signifying growing trust in blockchain-based assets. Traditional banks, such as DBS, are also piloting the use of tokenized Treasurys in repo transactions and credit markets where secure, readily available collateral is crucial.
This evolution isn’t confined to crypto-focused platforms. Swift, Chainlink, and UBS are making significant strides by connecting tokenized funds to traditional financial systems. Using ISO 20022 messaging standards, they enable seamless blockchain transactions between these two worlds. This integration fosters real-world use cases for tokenized securities and bridges the gap between traditional finance and digital asset markets.
The shift from niche DeFi experiments to integral parts of modern financial infrastructure is clear. The potential benefits are vast – automated lending, decentralized repo markets, and even cross-border credit networks powered by efficiency and reduced intermediaries.
Tokenized Treasurys are poised to become the standard for onchain collateral in both crypto and traditional finance as adoption grows across exchanges, banks, and other critical infrastructure providers. This begs the question: What next steps will shape this technology’s future?