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U.S. Treasuries

VanEck Launches VBILL Tokenized Fund for U.S. Treasuries on Major Blockchains

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  • VBILL tokenizes U.S. Treasuries on Ethereum, Solana, Avalanche, and BNB Chain.
  • VanEck’s VBILL offers institutional access to U.S. Treasury-backed assets on-chain.
  • Minimum investment for VBILL starts at $100K, with $1M for Ethereum blockchain exposure.

VanEck has launched a groundbreaking tokenized fund, VBILL, together with Securitize. The fund opens access to US Treasury-backed assets in major blockchain networks for institutional investors. It seeks to fill the gap between traditional finance and digital assets as a new channel for secure and transparent cash management solutions. 

VBILL will debut on Avalanche, BNB Chain, Ethereum, and Solana to transform crypto-native firms’ attitudes toward U.S. Treasuries.

Tokenized Fund Offers Institutional Access to U.S. Treasuries

The introduction of VBILL represents a significant step towards merging blockchain technology and traditional financial systems. VanEck, famous for its non-standard attitude towards digital assets, has presented this fund as a secure, transparent, and liquid tool for cash management. 

By tokenizing U.S. Treasuries, the fund guarantees that investors can access Treasury-backed assets more freely and efficiently.

Kyle DaCruz, Director of Digital Assets Product at VanEck, emphasized the importance of this launch, stating that tokenized funds like VBILL “enhance market liquidity and efficiency.” The fund’s debut is particularly relevant as the cryptocurrency industry sees an increasing interest in traditional financial instruments, especially in the context of stablecoin regulations that mandate reserves in U.S. Treasuries. VBILL offers crypto firms an easy way to tap into the treasury market, offering liquidity and enhanced security while keeping transactions on the blockchain.

Access to U.S. Treasuries Through Blockchain Networks

VanEck’s VBILL is first deployed on four leading blockchain networks: Avalanche, Binance Chain, Ethereum, and Solana. This multichain strategy will enable institutional investors to access the fund in different blockchain ecosystems easily. Wormhole makes cross-chain interoperability possible, enabling seamless and safe token transfer across the networks, increasing the flexibility and efficiency of operation.

The minimum investment required to receive the VBILL fund depends on the blockchain. The minimum buy-in for Avalanche, BNB Chain, and Solana is $100k, while Ethereum has a minimum level of $1m. This pricing structure targets institutional investors, which indicates the fund’s exclusivity. Although retail investors cannot be involved, the introduction of VBILL is a significant milestone toward more institutional adoption of tokenized traditional assets.

Securitize’s Role in Tokenization and Fund Administration

Securitize a leading tokenization platform and oversee VBILL’s logistics. The firm is responsible for tokenizing U.S. Treasury assets, fund administration, and broker-dealer capabilities. Through its expertise in tokenization, Securitize benefits VBILL by ensuring that the fund runs effectively and within the approved regulations.

Carlos Domingo, the co-founder and CEO of Securitize, highlighted the potential of tokenization to open new market opportunities. He stated, “With VBILL, our combined efforts demonstrate tokenization’s ability to create new market opportunities with the speed, transparency, and programmability of blockchain technology.”

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Tether’s Q1 Report Shows Over $1 B Profit and Near-Record $120B in U.S. Treasuries

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  • Tether posted over $1B in Q1 2025 profit, supported by strong U.S. Treasury yield returns.
  • USD₮ supply rose by $7B as user wallets increased by 46M in Q1, showing rising adoption.
  • U.S. Treasury assets reached $120B for Tether, making up most of its backing reserves.

Tether International has released a Q1 2025 attestation report confirming financial success despite challenging crypto market conditions. The stablecoin issuer generated over $1 billion in operating profit, reaching its maximum ever U.S. Treasury holdings, which are near an all-time high of $120 billion. The figures, verified by accounting firm BDO, reflect a growing reliance on government securities for liquidity and reserve strength.

The latest performance indicates a more conservative income stream from Treasury yields than the $4.52 billion profit in Q1 2024, which was driven largely by Bitcoin and gold gains. As of March 31, the firm held assets worth $149.3 billion and liabilities worth $143.7 billion. The company maintains an excess reserve of approximately $5.6 billion, highlighting its interest in risk management through cash-equivalent assets.

Stablecoin Circulation and User Growth Expand

USD₮ circulation grew by about $7 billion in Q1 2025, bringing the total supply to nearly $148 billion. During the quarter, the user base adopting stablecoin wallets increased to 46 million, leading to a 13% rise. USD₮ has gained global adoption because of its position as a digital dollar alternative in various economic systems.

Tether attributes its growth to its stablecoin’s liquidity and operational attributes, including liquidity, transparency, and easy accessibility to digital assets. Moreover, 66% of the reserves backing USD₮ are in U.S. Treasuries, with a smaller portion in gold and Bitcoin. The reserves held by Tether in Bitcoin declined to $7.7 billion, down from prior quarters, due to new U.S. regulatory frameworks for stablecoin issuers.

Tether’s Regulatory Advances and Strategic Investments

Q1 2025 marked Tether’s first reporting period under regulatory oversight in El Salvador. According to El Salvador’s digital asset framework, the company operates as a licensed stablecoin issuer. The regulatory acknowledgment signifies positive movement in stablecoin legislation throughout the U.S., with the company distributing most of its reserves to government bonds to prepare for future compliance.

Tether makes investments outside its reserve holdings through its subsidiary, Tether Investments. The company has allocated over $2 billion to projects focusing on artificial intelligence, renewable energy, communications, and data infrastructure. The strategic investments made by Tether are not part of USD₮’s reserve backing, although they demonstrate the company’s commitment to emerging technological developments.

CEO Paolo Ardoino said, “We remain focused on delivering trust, transparency, and value to hundreds of millions of users.” While strengthening the US dollar’s digital presence, Tether is building its position within the worldwide digital finance industry through increased Treasury backing and an expanding user base.

Tether Ranked 7th Largest Buyer of U.S. Treasuries, Surpassing Major Nations in 2024

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  • Tether purchased $33.1 billion in U.S. Treasuries, surpassing major countries in 2024.
  • USDT’s $33.1 billion investment shows stablecoins’ rising influence in U.S. debt markets.
  • Tether’s U.S. Treasury holdings surpass those of Germany, Mexico, and Canada in 2024.

Tether, the issuer behind USDT, the world’s largest stablecoin USDT secured position seven among the largest foreign buyers of U.S. Treasury securities for 2024. Paolo Ardoino revealed through a statement on March 20 that Tether acquired $33.1 billion worth of U.S. Treasury bonds. Furthermore, the company has surpassed nations such as Canada, Germany and Mexico. Through this major market shift, stablecoins, particularly USDT have demonstrated increased significance in the U.S. debt market.

Tether’s Growing Role in the U.S. Treasury Market

Tether CEO Paolo Ardoino confirmed that the firm’s net purchase of U.S. Treasury securities in 2024 reached $33.1 billion, placing it above several major economies. The company continues its rapid expansion through increased participation in U.S. government-backed securities. The acquisition positions Tether among the leading purchasing entities, surpassing purchasing activity recorded by Canada, Mexico, and Germany.

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Source; Paolo Ardoino on X

While Tether’s holdings rank it seventh globally, the Cayman Islands, a leading jurisdiction for hedge funds, remains the top purchaser of U.S. Treasuries with over $100 billion in acquisitions. However, Ardoino emphasized that the company’s figures represent investments from a single entity, unlike the broader holdings from regions like the Cayman Islands and Luxembourg, which involve multiple hedge funds.

Tether chose to invest in U.S. Treasuries as part of its USDT stability strategy for maintaining the U.S. dollar-pegged stablecoin. The role of U.S. Treasuries as reserves enhances Tether’s stablecoin credibility because they establish global safety and liquidity standards, maintaining trust for potential token users.

The Impact of Stablecoins on the Global Economy

Tether’s increased U.S. Treasury holdings highlight how stablecoins supported by the U.S. dollar expand their market influence. Stablecoins continue to play an essential role as they rapidly grow in the U.S. Treasury debt market. Additionally, U.S. lawmakers and financial regulators have recently started to pay attention to stablecoins because they are advancing to become key drivers that affect U.S. Treasury supremacy.

U.S. Treasury Secretary Scott Bessent recently pointed out that crypto and stablecoins are essential in ensuring the global influence of the U.S. dollar. Former President Donald Trump echoed this sentiment during a recent appearance at the Digital Asset Summit stressing that crypto could further strengthen the dollar’s global position.

Tether’s substantial holdings of U.S. Treasuries are also part of a broader shift in the stablecoin market. According to analysts, the growing market capitalization of stablecoins, which surpassed $219 billion, suggests that the market is still in a mid-cycle phase rather than reaching its peak.

Legislative Developments in the Stablecoin Market

The adoption of stablecoins in the U.S. Treasury market occurs during lawmakers’ push to define regulations for the stablecoin sector. Kristin Smith, CEO of the Blockchain Association believes that adequate stablecoin regulatory laws could be finalized by August 2025. The proposed legislation seeks to establish a framework for the expanding stablecoin market so stablecoins can maintain their position as trustworthy financial systems.