The Quiet Repricing of On-Chain Treasuries
As US Treasuries on-chain cross $7.4B, the question isn't whether traditional finance is migrating — it's how fast the rails are catching up.
A new yield curve on-chain
The market for tokenized US Treasuries has crossed seven billion dollars. That's not a vibe shift — that's a coupon-paying instrument with real custody, real auditors, and a settlement clock that doesn't sleep.
Why now
Three forces converged: rate-cut anticipation that pushed yield-hungry capital to look for tokenized exposure, the maturation of bankruptcy-remote SPV structures that institutional allocators actually trust, and a regulatory tone in 2026 that — without being warm — has stopped being openly hostile.
The flywheel
Each new issuer reduces the spread tokenized buyers demand. Each reduced spread brings the next allocator closer to indifference between TradFi and on-chain. The flywheel is no longer hypothetical; it's mechanical.
Risk corner
The biggest unmodeled risk is concentration. Two issuers still hold the lion's share of AUM. A single operational stumble would chill the category for a quarter, maybe two. Diversification is the next milestone.