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

Market research firm The Kobeissi Letter indicates that on-chain investors are accelerating their allocation to tokenized U.S. Treasuries. Data shows the total market value of on-chain U.S. Treasury funds has risen to a historic high, reaching $16.2 billion, up approximately 77% from the beginning of the year. Kobeissi stated that the growth is primarily driven by investors seeking on-chain yield opportunities. An increasing number of users are using tokenized U.S. Treasuries as collateral to borrow stablecoins and deploying funds into DeFi strategies to capture additional yield. Some on-chain platforms support looping operations through lending mechanisms, where users repeatedly collateralize assets, borrow stablecoins, and redeploy capital. In some cases, this can boost the annual percentage yield to over 10%.