Tokenized Treasury Funds Reach $14.69 Billion as Liquidity Faces Test

Tokenized U.S. Treasury funds carried $14.69 billion in distributed value Friday, Oct. 16, across 117 assets, but the market tally does not show how much of that supply lenders have pledged as collateral. That gap matters because a fund’s onchain transferability does not guarantee a lender can sell it quickly or convert it to cash after a default. The snapshot also listed 86,753 holders and $89.27 million in represented value. The figures describe the category’s size, not the amount available to meet margin calls. Transfer restrictions can complicate sales. BlackRock’s BUIDL fund enables transfers around the clock, but only to other pre-approved investors. A lender facing liquidation would need an eligible recipient. A Saturday default may also leave a lender working from Friday’s price.

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