Tokenized Treasuries vs Stablecoins
How tokenized cash-like products differ from ordinary stablecoins.
Stablecoins made dollars useful on-chain. Tokenized Treasuries ask whether on-chain dollars can also pass yield to the holder.
The core difference
A stablecoin is usually designed to track one dollar and move easily. A tokenized Treasury or money market product is designed to represent exposure to cash-like instruments that may generate yield, often with more rules around who can hold or transfer it.
Where stablecoins win
Stablecoins are liquid, integrated across exchanges and wallets, and easy to understand. The tradeoff is that holders usually do not receive reserve yield directly.
Where tokenized Treasuries win
Tokenized Treasury products may pass through income from short-term government debt or money-market-style assets. The tradeoff is added onboarding, permissions, redemption rules, fees, and tax complexity.
Mental model
Stablecoins are closer to on-chain checking accounts. Tokenized Treasuries are closer to on-chain money market or Treasury fund exposure.
