Data: Total market cap of on-chain US Treasury funds reaches $16.2 billion, hitting a record high, up approximately 77% from the start of the year

TechFlow news, August 04, market research firm The Kobeissi Letter stated that on-chain investors are accelerating allocations to tokenized U.S. Treasuries. Data shows the total market cap of on-chain U.S. Treasury funds has risen to a historic high, reaching $16.2 billion, up approximately 77% from the start of the year.

Kobeissi stated that the growth is mainly driven by investors seeking on-chain yield opportunities. Increasingly, users are using tokenized U.S. Treasuries as collateral to borrow stablecoins and deploying funds into DeFi strategies to gain extra yield. Some on-chain platforms support looping operations via lending mechanisms, where users repeatedly collateralize assets, borrow stablecoins, and redeploy funds, in some cases boosting the annualized yield to over 10%.