Euler adds VanEck tokenized fund as $15B in Treasuries go onchain

DeFi lending protocols are redesigning their architecture for Wall Street as tokenized U.S. Treasuries top $15 billion in assets.

VanEck's tokenized Treasury fund, issued by Securitize, went live on DeFi lending platform Euler on Thursday, letting investors use tokenized U.S. government debt as onchain collateral. The VBILL fund gives qualified investors exposure to short-term Treasury bills in tokenized form, which can now be posted as collateral to borrow liquidity on Euler's lending markets.

"The really exciting thing is that there are protocols now that are excited to integrate permissioned assets," Graham Ferguson, head of ecosystem at Securitize, said. "This is something that previously had not been the case."

Euler, which holds over $320 million in assets on its platform, integrated Securitize's DS Protocol earlier this year to allow tokenized securities to interact with lending markets while preserving investor eligibility requirements and transfer restrictions. Pricing data for VBILL is supplied through RedStone oracles. Tokenized U.S. Treasuries have swelled 150% over the past year to surpass $15 billion, according to RWA.xyz data.

The integration underscores how DeFi protocols are evolving as institutional investors push deeper into tokenized finance. Standard Chartered projects $2 trillion in tokenized assets by 2028, while BCG and Ripple estimate an $18.9 trillion market by 2033. Global asset managers including BlackRock, Franklin Templeton and Janus Henderson have all launched blockchain-based Treasury and money-market products aimed at institutions seeking yield-bearing onchain collateral.

DeFi adapts for institutional compliance

Euler pivoted earlier this year toward institutional use cases after originally operating as a fully permissionless lending protocol. Rival platform Aave launched Horizon, its real-world asset platform focused on institutional borrowers and tokenized collateral. The trend reflects a broader shift: DeFi protocols built for permissionless crypto assets are retooling their architecture to accommodate regulated products such as tokenized money market funds and private credit.

"As more serious institutional investors are exploring the space, they need to have certain protections and permissions that they're used to in traditional finance," Ferguson said. "DeFi protocols are finally waking up to the fact that if they want to welcome in this capital, they're going to have to change their ways."

The VBILL listing on Euler marks the latest example of tokenized securities entering DeFi without removing compliance controls. Securitize's DS Protocol keeps transfer and eligibility rules active inside lending markets, balancing crypto's open infrastructure with the compliance expectations of traditional finance firms.

This article is for informational purposes only and does not constitute investment advice.