Crypto Treasury Management

Who should go for tokenized teasury notes?

One important question to ask before buying tokenized treasury notes and mmf, what benefits does it bring you compared to the original underlyings? In my humble opinion, they fulfill some specific demands of 3 groups of users:

(1) Users whose money lives onchain, and not willing to go offchain. These users can be DAOs where offchain operations can be troublesome or even legally infeasible, and Crypto holders who are reluctant to kyc. Without leaving the chain, they can allocate funds to treasuries to earn risk free rate.

(2) Users who want to release liquidity of their funds and take leverage. With traditional treasury notes and mmf, you can hardly do anything with it besides simply holding it. However, for tokenized treasuries, they are easy to integrate into Defi ecosystem, from AMM to lending to yield farming

(3) Funds that cannot invest in crypto due to compliance reason. For most funds (who manage clients’ money), it is more feasible and compliant to invest in Treasuries than cryptos. So tokenized treasuries can be a good gateway to onboard these funds into crypto world.