Crypto’s Cure for a Shrinking Customer Base: Buy Government Bonds

Decentralized finance companies are buying U.S. government bonds to boost blockchain-based financial services. DeFi platforms have lower yields after central bank rate increases dampened enthusiasm for speculative assets. Maple Finance launched a product that earns interest equivalent to a one-month

April 27, 2023 . 2:49 AM

1 min read

Decentralized finance (DeFi) companies are buying U.S. government bonds to boost yields on their blockchain-based financial services.
DeFi platforms have lower yields after central bank rate increases dampened enthusiasm for speculative assets.
Crypto firms are seizing on the higher yields and relative safety offered by U.S. government bonds.
Maple Finance launched a product that earns interest equivalent to a one-month Treasury bill minus a fee on deposits offering a yield of about 3.4%.
Tokenized money-market funds offer a competitive yield compared to stablecoins, appealing to big crypto investors who want to keep stablecoins on hand for fast trading and earn a return on idle cash.