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

Decentralized finance companies are buying US government bonds to boost yields on their blockchain-based financial services, as yields offered by peer-to-peer crypto platforms plunged after central bank rate increases.

April 27, 2023 . 2:48 AM

1 min read

Decentralized finance companies are buying US government bonds to boost yields on their blockchain-based financial services.
Upstart DeFi projects once promised double or triple-digit annualized returns but yields dropped after central bank rate increases.
Crypto firms, such as Maple Finance, are embracing the financial establishment with products offering higher yields and relative safety.
Investors and traders can earn interest from stablecoin holdings, either by buying Treasury bills directly or through tokenized Treasury products.
The trend of tokenizing real-world assets is gathering momentum, tying into the growing interest in DeFi.