VanEck’s tokenized treasury fund has started trading on Euler using Securitize’s infrastructure, marking a new milestone in decentralized finance. Through this development, eligible investors can now use US Treasury bills represented as tokens on blockchain as collateral, gaining access to liquidity directly within the DeFi ecosystem.
Tokenized treasuries meet DeFi
The VBILL tokenized treasury product, operated by Securitize and developed by VanEck, is now available on the Euler platform. Investors can offer US Treasury bills as on-chain collateral and borrow within a blockchain environment, with Securitize’s proprietary DS Protocol deployed throughout the process.
Glossary: The Securitize DS Protocol is a software standard that automatically checks investor eligibility and transfer restrictions for securities transactions on blockchain. This ensures assets are only transferred between approved parties.
Thanks to this protocol, conditions regarding who can transfer tokenized treasury bills and under what circumstances are strictly defined. This framework is widely regarded as essential for compliance-focused investing. Real-time price feeds are delivered via RedStone oracles, ensuring the accurate valuation of token collateral pledged by investors.
According to Securitize ecosystem lead Graham Ferguson, “Some protocols are now showing interest in permissioned assets. Previously, this was uncommon in the DeFi market.”
Institutions ramp up blockchain adoption
The listing on Euler comes at a time when major financial institutions are increasingly engaging with blockchain-based treasury and money market products. Data from RWA.xyz shows that assets under management in tokenized US Treasuries have topped $15 billion, growing nearly 150 percent over the past year.
Industry giants such as BlackRock, Franklin Templeton, and Janus Henderson have emerged as leading participants in this expanding market. These products primarily target institutional investors seeking collateral linked to real-world yields. Nonetheless, the current volume of tokenized assets in this space remains modest compared to broader financial sector expectations.
| Organization | Tokenized Treasury Assets (2024) |
|---|---|
| RWA.xyz | $15 billion |
| Standard Chartered (Projected 2028) | $2 trillion |
| BCG & Ripple (Projected 2033) | $18.9 trillion |
Euler and DeFi platforms usher in a new era
Currently, Euler hosts over $320 million in assets on its platform. In recent times, it has pivoted away from a fully permissionless model to adopt a financial architecture more accessible to institutional users. Similarly, other decentralized finance protocols like Aave have begun transforming by introducing real-world asset-based lending platforms, such as Horizon.
Securitize underscores the need for DeFi protocols to align open blockchain structures with institutional compliance standards. As a result, major fund managers and institutional actors are increasingly seeking permissioned assets that comply with regulatory norms. This shift is prompting DeFi protocols to adapt their systems to attract institutional capital.
Institutional dimension arrives for DeFi with tokenized products
The addition of VBILL to Euler demonstrates that tokenized securities can flow through decentralized channels without sacrificing regulatory oversight. Securitize’s DS Protocol makes this adaptation possible by automatically managing investor qualification and transfer rules within the system.
Thanks to this collaboration, institutional investors on Euler can now use regulated treasury products, not just typical cryptocurrencies, as collateral. This signals a new bridge for DeFi infrastructure into the world of traditional finance, setting the stage for greater institutional participation.
