🏛️ Tokenized Treasuries
US Treasury bills — the "risk-free" rate — are the foundation of RWA in DeFi. By wrapping T-bills into ERC-20 tokens, protocols like Ondo (USDY), Mountain (USDM), and Backed (bIB01) give on-chain treasuries access to ~5% yields without leaving DeFi. Over $6B in tokenized treasuries exist on-chain as of early 2025.
📐 Tokenization Structure: Asset → SPV → Token
This canvas shows the legal and technical structure. Click protocol tabs to compare architectures.
💵 Yield Calculator
Compare net yields across protocols after fees. Adjust the T-bill rate to simulate different rate environments.
🔍 Protocol Comparison
- Type: Rebasing yield-bearing stablecoin
- Underlying: Short-term US Treasuries + bank deposits
- KYC: Required for minting/redeeming; secondary market permissionless
- Chains: Ethereum, Solana, Mantle, Sui
- Fee: ~0.35% management fee
- Custodian: Ankura Trust, Morgan Stanley
- Min Investment: $500 for mint
- Type: Rebasing — balance grows daily
- Underlying: Short-duration US Treasuries
- KYC: Required for mint/redeem
- Chains: Ethereum, Base, Arbitrum, Optimism
- Fee: ~0.30% management fee
- Custodian: Multiple regulated custodians
- Min Investment: $100K for direct mint
- Type: Price-tracking token (NAV accrual)
- Underlying: iShares $ Treasury Bond 0-1yr UCITS ETF
- KYC: Required for primary market only
- Chains: Ethereum, Gnosis
- Fee: ~0.20% + ETF fee (~0.07%)
- Custodian: Sievert Larsen & Partners
- Min Investment: ~$100K for mint
🔄 Rebase vs NAV Accrual
Two approaches to distributing yield. Use the slider to see how balances evolve over time.
Your token balance increases daily. 1000 USDM becomes 1050 USDM after a year at 5%. Price stays ~$1. Tax event on each rebase in some jurisdictions. Simpler UX — "my balance grows."
Token count stays the same; price increases. 10 bIB01 at $100 becomes 10 bIB01 at $105 after a year. Potentially more tax-efficient (unrealized gain until sale). Better for DeFi composability — no rebase accounting needed.
⚠️ What Can Go Wrong
If the custodian is compromised or goes bankrupt, there may be delays or losses accessing the underlying T-bills. SPV bankruptcy remoteness helps, but isn't tested under stress.
If Fed cuts rates to 0%, tokenized treasury yields vanish. The tokens still work, but the yield advantage over stablecoins disappears. Duration risk is minimal (0-1yr bonds) but not zero.
The SEC may classify yield-bearing tokens as securities. Ondo is already restricted to non-US persons or accredited US investors. Regulatory clarity is still evolving.
Minting and redeeming often takes 1-3 business days (T-bill settlement is T+1). During that window, you're exposed to rate changes and can't exit instantly like with on-chain swaps.