Crypto’s New Crush: Why Tokenized Treasuries Are Up and Stablecoins Are Down Bad

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Like some financial butterfly twitching its wings in a spreadsheet-strewn menagerie, the assets emblazoned with the word “tokenized”—that fashionable neologism!—have fluttered up a dizzying 80%, landing at an astonishing $7.4 billion. So proclaims the soothsayers of data, RWA.xyz, leaving analysts blinking like owls in broad daylight. 🦉📈

out with the stable, in with the “I’ll take my interest with dividends, thanks.”

Yields on Treasury bonds, still floating high thanks to the Feds’ chronic inflation anxiety, are rather seductive: the venerated 20-year flavor is currently parading a yield of 4.893%—enough to make conservative grandmothers and degenerate crypto holders briefly see eye-to-eye. 👵🚀

Tokenized treasuries spell bad news for stablecoin issuers

Poor Circle, poor Tether—these issuers, hitherto plump and purring from collecting interest on Treasuries, now face a revenue reckoning. If crypto capital continues pouring into the tokenized Treasury punch bowl, Circle and friends may find themselves scrambling for creative yield solutions (expect PowerPoint decks with the word “synergy”).

Ironically, in this cruelly comedic opera, the demand for plain old stablecoins is not precisely slumping offstage; in fact, its supply has ballooned from a modest $2.5 billion in January 2025 to a corpulent $255 billion by July. Evidently, someone out there is still hoarding stablecoins like they’re about to be discontinued. 🎭💰

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2025-07-07 15:48