Data: The on-chain US Treasury market size has surpassed 16.2 billion USD, with investors leveraging DeFi to amplify returns

The market research agency The Kobeissi Letter indicates that investors are accelerating the allocation of tokenized U.S. Treasuries, driving the continuous expansion of the on-chain U.S. Treasury market. Data shows that the total market value of on-chain U.S. Treasury funds has risen to a historical high of $16.2 billion, an increase of approximately 77% since the beginning of the year.

Kobeissi points out that market growth is primarily driven by demand for on-chain yields. An increasing number of users are using tokenized U.S. Treasuries as collateral to borrow stablecoins and deploy funds into DeFi strategies to enhance capital efficiency. Some on-chain lending platforms support looping leverage strategies, allowing users to repeatedly collateralize tokenized Treasuries, borrow stablecoins, and reinvest in the market, with some strategies offering annualized returns exceeding 10%.

Kobeissi believes that as traditional financial assets continue to go on-chain, tokenized U.S. Treasuries are becoming an important infrastructure for on-chain finance and may become a significant component of future on-chain capital markets.