Over $1 billion in U.S. Treasury securities (UST) have been tokenized on public blockchains.

Demand for tokenized versions has surged as Treasury yields have risen sharply over the past two years. The 10-year yield, the so-called risk-free rate, has risen from 1.69% to 4.22% since March 2022, weakening the attractiveness of lending dollar-pegged stablecoins in decentralized finance markets.