VanEck tokenized Treasury fund live on Euler DeFi lending

A tokenized U.S. Treasury fund from asset manager VanEck is now active on the decentralized finance lending platform Euler, allowing qualified investors to use the tokenized securities as collateral for on-chain loans. The integration, facilitated by tokenization specialist Securitize, represents a significant step in the convergence of traditional finance and DeFi infrastructure.

The VanEck VBILL Treasury fund went live on Euler’s lending markets, enabling investors to pledge their tokenized Treasury holdings as collateral to borrow capital. This borrowed liquidity can then be deployed across other on-chain protocols. A key feature of the arrangement is that the entire process occurs within the regulatory compliance boundaries attached to the underlying asset, maintaining investor eligibility requirements and transfer restrictions.

This development underscores a broader shift within the DeFi sector. Platforms originally built for permissionless crypto assets are increasingly adapting their architecture to accommodate regulated financial products. Graham Ferguson, head of ecosystem at Securitize, noted that DeFi protocols are evolving under pressure from institutional investors...