The total value locked in tokenized Treasuries has surged to $15.35 billion, surpassing the mid-April peak of $15.10 billion, according to rwa.xyz data. This rise comes as markets increasingly price in a Federal Reserve interest-rate hike, shifting from earlier expectations of rapid rate cuts. Iggy Ioppe, CIO at Theo, noted that capital sitting in BlackRock's BUIDL and tokenized T-bills rather than spot crypto is proving prescient. Flows into yield-bearing tokenized assets could increase further if April's PPI report, expected at 4.9% year-on-year, shows persistent inflation. Bitcoin remains resilient above $80,000 despite a hotter CPI, but Marex analysts warn that further gains may be limited if real inflation rates continue to climb. Miner balance sheet pressures could also cap upside. Meanwhile, smaller coins like ING, DOT, ATOM, and TRUMP saw gains of 5% or more, indicating selective capital rotation. Key upcoming events include the PPI report, the Clarity Act vote, and the Trump-Xi meeting.

Key facts

• Tokenized Treasuries TVL hits $15.35B, topping mid-April peak.
• Market prices in Fed rate hike, shifting from earlier cut expectations.
• Bitcoin holds above $80K despite hot CPI, but inflation poses headwind.
• Miner balance sheet pressures may cap upside on rallies.
• Smaller coins like ING, DOT, ATOM, TRUMP gain 5%+ amid rotation.

KeyAudit data perspective