VanEck’s tokenized U.S. Treasury fund, VBILL, is now accepted as collateral on decentralized lending protocol Euler, allowing holders to borrow digital assets while continuing to earn the fund’s Treasury yield.
Vbill added to Euler through Securitize and KPK
Financial technology firm Securitize has integrated VBILL into an Euler lending market curated by KPK, according to a Thursday announcement. The move links tokenized Treasury assets with decentralized borrowing platforms and extends earlier work between Securitize and Euler.
VBILL currently manages about $61 million in assets across roughly 30 onchain wallet addresses, data from RWA.xyz shows. Launched in May 2025, the fund offers a seven-day annualized yield of 3.38% and charges a 0.20% management fee.
How the integration works
The Euler listing relies on Securitize’s DS Protocol, a blockchain framework used to issue and manage security tokens while embedding regulatory compliance directly onchain. This setup allows compliant tokenized assets such as VBILL to be used in decentralized finance while meeting securities rules.
By posting VBILL as collateral, holders can access liquidity through borrowing instead of selling, retaining exposure to the underlying Treasury bills and their yield.
Expanding presence across defi and blockchains
Securitize had previously brought VBILL to an Aave Horizon market, broadening its reach across multiple networks including Avalanche, BNB Chain, Ethereum, and Solana. Cross-chain movement of VBILL is supported via the Wormhole interoperability system, enabling users to move positions between blockchains without exiting the fund.
The broader acceptance of VBILL as collateral underscores a deeper link between conventional fixed-income instruments and digital asset markets, as tokenized Treasuries begin to function as active, yield-bearing building blocks in defi.
Tokenized treasuries drive real-world asset growth
The integration comes as the market for tokenized real-world assets has surpassed $34 billion as of May 2026. Onchain products tied to U.S. Treasuries have been a key growth engine, with their total value nearing $16 billion — more than ten times the level seen in mid-2024.
This growth reflects rising demand for tokenized yield-bearing instruments that can be deployed in automated lending, borrowing, and liquidity protocols, improving capital efficiency relative to traditional buy-and-hold structures.
Regulatory clarity and infrastructure build-out
The shift toward tokenized securities is being reinforced by a more defined regulatory landscape. Legislation such as the Digital Asset Market Clarity Act is advancing, and agencies have clarified that a security’s legal status does not change whether it is held onchain or off-chain. This clearer guidance is reducing legal uncertainty and encouraging participation from established financial firms.
At the infrastructure level, key milestones are approaching. The Depository Trust & Clearing Corporation plans to begin limited production trades of tokenized securities in July 2026, ahead of a wider commercial rollout. These steps represent the early construction of the market “plumbing” needed to integrate tokenized assets like VBILL into mainstream financial systems at larger scale.
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