#There is attention Investors are thus moving quickly into tokenized US Treasuries The market value of tokenized US Treasuries has reached a new record of $16.2 billion; A figure that has grown by 77% since the beginning of 2026. Why has the demand increased so much? The main reason for this growth is the increase in demand for yield in the Anchin ecosystem through the use of short-term US Treasury Bills as collateral. The common process is as follows: The investor deposits the tokenized treasury bonds in such a protocol. In return, the stablecoin borrows. Stablecoin invests the proceeds in various decentralized finance (DeFi) strategies to earn more returns. "Looping" mechanism On some such platforms, such as Jupiter, users can repeat this process several times: They pledge treasury bonds. They borrow stablecoins. With it, they provide a collateral asset again. They borrow again. This process, which is called looping, increases capital leverage and in some situations can increase the annual return (APY) to more than 10%. Why is this important? US Treasury bonds are considered one of the least risky financial assets in the world. The tokenization of these papers has made it possible for users to: Benefit from the returns of low-risk US assets in the blockchain space. have access to liquidity without withdrawing capital from the crypto ecosystem. Use these assets as collateral for DeFi activities. Manage your capital more quickly and transparently.
