Tokenized Treasuries don hit $15.35B as fear of rate hikes dey push on-chain yield up
Tokenized Treasuries don set new record at $15.35B TVL on May 13, as investors dem dey rotate go on-chain yield because Federal Reserve expectations dey change.
Macro remain the main driver. April CPI climb to 3.8% YoY (from 3.3% for March), wey make chance for Fed rate hike higher. Traders still dey watch May 14 PPI print; e go hard to keep “June cut” expectations if inflation remain sticky.
Flows dey move from spot crypto to Tokenized Treasuries. The products get about 3.41% seven-day average yield, with Circle’s USYC leading (~$2.9B), ahead of BlackRock’s BUIDL (~$2.58B). Other named offerings include Fidelity’s FDIT, Franklin Templeton’s BENJI, and Ondo’s OUSG. The wider tokenized real-world assets market don cross $30.9B, with Tokenized Treasuries making about half.
For traders, na “cash-like yield” bid wey fit drain liquidity from risk assets short-term—fit limit upside follow-through for BTC. The articles still flag BlackRock push to treat tokenized Treasury products as same as traditional reserves for stablecoin purposes, wey fit strengthen institutional adoption over time.
Near term, hotter PPI fit accelerate Tokenized Treasuries inflows and keep pressure on spot crypto. Medium term, higher-for-longer rates backdrop fit continue to weigh on BTC trend momentum and systematic selling risk go rise if key technical levels fail.
Bearish
Tokenized Treasuries wey don reach $15.35B TVL dey show say demand dey grow for on-chain yield wey be like cash. As CPI dey rise and PPI soon go land, traders fit price in say rates go stay high for longer or risk of more rate hikes fit return. That kain backdrop dey push new capital go into money-market-like RWA products instead of spot crypto.
Short-term, e fit reduce liquidity wey dey available for BTC and fit cap upside follow-through, especially if risk assets react badly to hotter inflation prints. Medium-term, sustained higher real yields fit put pressure on BTC trend momentum.
Even though adoption tailwind for Tokenized Treasuries good, the direct price impact wey dey considered here na on BTC itself: both macro repricing and liquidity rotation point to near-term downside or capped rallies, so e be bearish.