VanEck’s tokenized fund, issued by Securitize, is now live on DeFi lending platform Euler, allowing investors to use tokenized U.S. Treasuries as onchain collateral.
The move underscores how DeFi protocols are redesigning their platforms to accommodate institutions and regulated assets, Graham Ferguson, Securitize’s head of ecosystem, said.
Standard Chartered, BCG and Ripple suggest the tokenized asset market could scale into trillions of dollars over the next decade, pushing DeFi to balance openness with traditional compliance demands.
The move allows investors to use tokenized U.S. Treasuries as collateral to borrow and deploy liquidity elsewhere onchain while maintaining compliance limits tied to the asset.
The move highlights how DeFi protocols are evolving as institutional investors push deeper into tokenized finance. Platforms that once centered around permissionless crypto assets are beginning to redesign their architecture for regulated products such as tokenized money market funds and private credit.
Tokenized U.S. Treasuries have become one of the fastest-growing sectors in crypto, topping $15 billion in assets swelling 150% in a year, according to RWA.xyz data. Global asset managers including BlackRock, Franklin Templeton and Janus Henderson have all launched blockchain-based Treasury and money-market products aimed at institutions seeking yield-bearing onchain collateral.
But that’s still a fraction of the potential how big asset tokenization could become. Standard Chartered projected $2 trillion in tokenized assets by 2028, while BCG and Ripple forecasted a $18.9 trillion market size by 2033.
“The really exciting thing is that there are protocols now that are excited to integrate permissioned assets,” Graham Ferguson, Securitize’s head of ecosystem, told CoinDesk. “This is something that previously had not been the case.”
Euler, which currently has over $320 million in assets on its platform, pivoted earlier this year toward institutional use cases after originally operating as a fully permissionless lending protocol. Rival platform Aave also launched Horizon, its real-world asset platform focused on institutional borrowers and tokenized collateral.
Euler integrated Securitize’s DS Protocol earlier this year, allowing tokenized securities to interact with lending markets while preserving investor eligibility requirements and transfer restrictions. Pricing data for VBILL is supplied through RedStone oracles.
The challenge for DeFi protocols, according to Securitize’s Ferguson, is balancing crypto’s open infrastructure with the compliance expectations of traditional finance firms.
“As more serious institutional investors are exploring the space, they need to have certain protections and permissions that they’re used to in traditional finance,” Ferguson said.
“DeFi Protocols are finally waking up to the fact that if they want to welcome in this capital, they’re going to have to change their ways,” he added.
Samsung Securities is set to take a 2% stake in Dunamu, worth over $200 million, from affiliates of technology conglomerate Kakao.
What to know:
Three Samsung affiliates agreed to buy 4% of Dunamu, the operator of South Korea’s largest cryptocurrency exchange, Upbit, from tech conglomerate Kakao.
The $408 million transaction means Kakao has now offloaded about $1.5 billion worth of equity in Dunamu in less than a month.
