Follow the Collateral: How Tokenized Treasuries Are Entering Institutional Crypto

The article argues that tokenized U.S. Treasuries are becoming the key institutional use case for crypto because they can serve as acceptable collateral. It says the tokenized Treasury market grew from about $1.7 billion in early 2024 to $15.2 billion across 76 products by early May 2026, with other trackers placing it near $16.2 billion. The piece emphasizes that institutional adoption is measured by what risk committees accept as margin, not retail signups. It also notes the market remains early and uneven: tokenized Treasuries are the only production-grade category, while many other tokenized assets remain constrained by custody and legal-ownership issues. For Bitcoin, the article highlights shifting collateral preferences through wrappers like cbBTC, BTCB and LBTC, showing how on-chain lending and exchange liquidity are shaping institutional crypto infrastructure.