Home›Crypto›Stablecoins›Tokenization is shifting from distribution to onchain…

Tokenization is shifting from distribution to onchain financial utility

Guest analysis says tokenized US Treasury funds account for about $16 billion in distributed value, but most current tokens stay economically idle until they are used as collateral or in structured positions.

Reported · Written up by our desk · Stablecoins

CryptoSlate published a guest opinion arguing that tokenized funds have moved beyond novelty, with tokenized US Treasury funds now holding roughly $16 billion in distributed value and many major traditional asset managers among the issuers.

The piece says the challenge is not getting assets onto the blockchain, but what happens afterward, because most tokenized funds are simply held, occasionally transferred, and then redeemed.

It contrasts two approaches: redeeming a tokenized fund to access cash versus depositing the token into a lending market as collateral to borrow stablecoins, keeping credit exposure and yield while changing the asset's function rather than selling it.

The analysis also cautions that not all tokenized assets behave the same in DeFi liquidations, noting that while DeFi can liquidate in minutes, traditional credit portfolios may have underlying assets that trade only during market hours, with NAV set periodically and redemptions taking days.

More like this

Sources