VanEck’s tokenized US Treasury fund, VBILL, is now usable as on‑chain collateral on the DeFi lending platform Euler — another sign that institutional-grade, regulated assets are moving into decentralised finance. What happened - Securitize, the tokenization firm behind VBILL, confirmed the fund is live on Euler’s lending markets. Pricing data for the asset is being supplied via RedStone oracles. - Euler had integrated Securitize’s DS Protocol earlier this year. That framework allows tokenized securities to participate in lending markets while preserving investor eligibility and transfer restrictions, so VBILL can be used as collateral without compromising compliance controls. - VBILL previously expanded onto Aave’s institutional Horizon market in November, where institutions can borrow stablecoins against their holdings. Why it matters - The integration highlights how DeFi infrastructure is adapting to accommodate regulated, institutional assets — combining crypto’s composability with the legal and compliance guardrails required by traditional investors. - “As more serious institutional investors are exploring the space, they need to have certain protections in place,” said Graham Ferguson, head of ecosystem at Securitize, summing up the industry’s tension between openness and institutional requirements. - Tokenized US Treasuries are emerging as one of the fastest-scaling segments in the real-world asset (RWA) market because they offer yield stability and clearer regulatory paths — traits that appeal to institutional participants. Bigger picture - Interest from big finance is growing: BlackRock recently filed a second Securitize‑powered tokenized fund with the SEC, showing tokenized funds can become repeatable institutional products. - Major firms including Standard Chartered, BCG and Ripple have suggested the tokenized asset market could scale into the trillions over the next decade, a projection that will push DeFi to find practical ways to balance openness with compliance. What to watch - Whether more tokenized Treasuries and other regulated securities show up across major DeFi lending markets. - How oracle, custody and compliance layers evolve to meet institutional needs without fragmenting DeFi’s composability. VanEck’s VBILL on Euler is a concrete example of those forces converging: traditional Treasury exposure, encoded as on‑chain tokens, now available as usable collateral within a decentralised lending protocol. Read more AI-generated news on: undefined/news