Tokenized Treasuries and Risk-Free Rates in DeFi

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This chapter discusses the concept of tokenized treasuries and risk-free rates in decentralized finance (DeFi). It explores the challenges of issuing stablecoins and bridging the gap between DeFi yields and the risk-free rate. The chapter also highlights the potential benefits and limitations of tokenized treasuries, as well as the role of stablecoins in exporting the power of the United States dollar.

The overnight fed funds rate is 5.3% but how much are you getting from that in your bank account? How much are you getting from your stablecoins?

Today on the show Martin Carrica walks us through a world in which we can tokenize treasuries instead of just dollars. ------ ✨ DEBRIEF | Ryan & David unpacking the episode: https://www.bankless.com/debrief-onchain-t-bills/

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0:00 Intro 7:16 Intro To Martin 10:37 Risk Free Rate of Return 16:06 Inflation Experience in Argentina 20:41 Why Don't We have Onchain TBills? 22:44 Laws Around Treasuries 27:08 Do The Fed's Want This? 31:53 Don't we Already Have Onchain Treasuries? 37:18 The Next Evolution Of Stablecoins 40:01 How Big Could This Be? 50:12 Cutting Out Commercial Banking 52:21 Explaining The Product 55:57 Onchain Vs Traditional TBills 1:02:51 How Big Can This Get? 1:04:10 Identifying Legit Onchain TBills 1:05:49 Why Doesn't Circle Do This? 1:11:50 Dealing With US Regulation 1:15:02 Central Bank Digital Currency 1:19:02 Can This Start a Bull Market?

----- RESOURCES

Martin on Twitter: https://twitter.com/mcarrica

Martin's article on Stablecoins: https://mcarrica.substack.com/p/stablecoins-are-cryptos-hidden-money

----- Not financial or tax advice. See our investment disclosures here: https://www.bankless.com/disclosures