CoinDesk
VanEck's VBILL tokenized Treasury fund, issued by Securitize, is now live on lending protocol Euler, letting eligible investors use the fund as onchain collateral to borrow and deploy liquidity across DeFi markets. The integration routes through Securitize's DS Protocol, which preserves investor eligibility and transfer restrictions, with pricing fed by RedStone oracles.
Euler, which holds over $320 million in assets, pivoted earlier this year toward institutional use cases after starting life as a fully permissionless lending venue. Rival Aave has launched Horizon, its own real-world-asset platform for institutional borrowers — proof the shift is sector-wide, not a one-off integration.
Why it matters
The move is the sharpest signal yet that DeFi lending is being quietly rebuilt for Wall Street, not retail crypto natives. Graham Ferguson, Securitize's head of ecosystem, framed it bluntly: "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 architecture trade-off is real — protocols that once prided themselves on permissionless access are now embedding identity checks, transfer restrictions, and compliance gates to make tokenized Treasuries usable as collateral without breaking the issuer's regulatory terms.
Market impact
Tokenized U.S. Treasuries have become one of crypto's fastest-growing sectors, swelling past $15 billion in assets — up roughly 150% year-over-year per RWA.xyz — with BlackRock, Franklin Templeton and Janus Henderson all live in the space. The ceiling, by the bullish projections, is far higher: Standard Chartered sees $2 trillion in tokenized assets by 2028, while BCG and Ripple forecast $18.9 trillion by 2033. VBILL on Euler is a small piece of plumbing today, but it's the template — permissioned collateral, onchain lending, TradFi yield — that institutions need before trillions can actually move onchain.
Frequently asked questions
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What is VanEck's VBILL fund and what just happened with Euler?
VBILL is VanEck's tokenized U.S. Treasury fund issued by Securitize. It is now live on lending protocol Euler, allowing eligible investors to use it as onchain collateral to borrow and deploy liquidity across DeFi while the issuer's compliance terms are preserved.
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How does Euler handle compliance for a tokenized Treasury fund?
Euler routes the integration through Securitize's DS Protocol, which enforces investor eligibility and transfer restrictions. Pricing data is supplied by RedStone oracles, so the lending market sees a live mark while the underlying security stays compliant.
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Why is this significant for DeFi lending?
Euler pivoted from a fully permissionless venue to an institutional-focused model earlier this year, and rival Aave has launched Horizon for the same market. Together they signal that DeFi lending books are being rebuilt for permissioned, regulated collateral rather than purely crypto-native assets.
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How big is the tokenized Treasury market right now?
Tokenized U.S. Treasuries have crossed $15 billion in assets, up roughly 150% year-over-year according to RWA.xyz. BlackRock, Franklin Templeton, Janus Henderson and VanEck all have live products targeting institutional demand for yield-bearing onchain collateral.
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What is the long-term projection for tokenized assets?
Standard Chartered projects $2 trillion in tokenized assets by 2028, while a separate BCG and Ripple forecast puts the market at $18.9 trillion by 2033. Both estimates treat VBILL-on-Euler-style integrations as the plumbing that has to exist before institutional capital can scale onchain.
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