One thing missing in the tokenized treasury conversation (i.e., yield-bearing stablecoins) is what happens if interest rates go up.

That would mean the value of the treasuries go down (a la SVB), and what if the stablecoins are then under collateralized? 🤔 

Happy to be schooled here if anyone knows

Stables are tied to FED interest rate and are just one instrument all the way down. Concerning, but the capital tied to them is now substantial enough to maybe normalise on a long timeline? Unsure.

Productising RWAfi @plumenetwork. Building https://transferagentprotocol.xyz on it. Hosting /rwa and /plume and /nest

Precisely the latter. And as we celebrate the pathfinders that diversify that short term distribution to the idle cash in crypto that seeks predictable yield, it would be wise to ask what’s next?

Yea someone pointed out to me that you can do it with really short term treasuries and avoid the interest rate risk.

Your point on it just being “one instrument” is so true though. We think of stables as crypto Trojan horse into TradFi, but actually it’s gov’t Trojan horse into DeFi