Tokenized Treasuries hit $15B as bitcoin stalls, Fed rate concerns grow

Tokenized Treasuries have surged to a record $15.35 billion in total value locked, topping the mid-April peak of around $15.10 billion, according to rwa.xyz data. The milestone comes as bitcoin remains pinned above $80,000 but shows signs of stalling, with traders increasingly concerned about a potential Federal Reserve rate hike.

For cryptocurrency and digital asset traders, the rise of tokenized Treasuries represents a direct competitor for capital. These yield-bearing instruments offer a safe, regulated alternative to volatile crypto assets, especially as the market reprices the likelihood of tighter Fed policy. The shift from expectations of rapid rate cuts earlier this year to a possible hike has boosted demand for tokenized Treasuries, which now provide attractive yields without the risk of crypto price swings. This dynamic could continue to siphon liquidity from altcoins and even bitcoin, as investors seek stability in a rising-rate environment. For the latest price action on bitcoin and other digital assets, traders can check NowPrice's real-time crypto quotes.

Looking ahead, the key catalyst remains the Fed's next policy decision. Market pricing for a rate hike has increased sharply, making the June meeting a critical event. If hawkish rhetoric persists, tokenized Treasuries could see further inflows, pressuring crypto valuations. Traders should monitor Fed speeches and inflation data for clues on the trajectory of monetary policy, as any shift in rate expectations will likely reverberate across both traditional and digital asset markets.