A recent report delves into the current landscape of tokenized treasuries, examining their holders, applications, and emerging demand trends within the crypto market.

Tokenized treasuries are increasingly viewed as a risk-off asset, with their growth patterns reflecting heightened demand during periods of market slowdowns or rotations.

The analysis reveals that the primary demand for these assets is predominantly driven by crypto-native entities, rather than traditional institutions venturing into on-chain investments.

In the market, Ethereum-based tokenized treasuries are particularly prominent, with a diverse range of holders including stablecoin protocols, individual investors, funds, and various other protocols.

These crypto-native entities are repurposing institutional products to bolster yield-bearing stablecoins, signaling a notable shift in capital allocation practices.

Despite their potential, protocol treasuries often remain idle, indicating a significant underutilization of these assets within the broader crypto ecosystem.

Moreover, retail participation in tokenized treasuries is still limited, which poses a barrier to their wider adoption in the market.