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On-Chain Dollars, On-Chain T-Bills, On-Chain Bond Markets: Secured Finance’s Vision for RWA & DeFi 2.0
How On-Chain Fixed Income and Collaborative Ecosystems Can Drive the Next Trillion-Dollar Wave of Tokenized Assets
Introduction
Over the past few years, we’ve witnessed a surge in institutional adoption of on-chain fixed income, driven especially by the rapid growth of tokenized U.S. Treasuries. Several prominent players — Ondo Finance, BlackRock, Securitize — have brought real-world assets (RWA) like Treasury bills onto public blockchains, opening up high-quality, stable-yield products for crypto-native investors. Research shows that the total value locked (TVL) in on-chain RWAs nearly doubled in 2024; forecasts project it could reach trillions of dollars over the next 3–5 years, buoyed by rising institutional inflows.
Where does Secured Finance fit into this DeFi 2.0 narrative? In short, we’re building a next-generation decentralized protocol that combines the maturity and depth of traditional fixed-income markets with the openness and composability of public blockchains. Our ultimate goal is to democratize finance for both institutions and retail users by delivering transparent, order book-driven interest rates, new on-chain bond products, and a stablecoin solution leveraging crypto assets.
This post is divided into three parts:
- Institutional Inflows into RWA — Why we believe real-world asset adoption on public blockchains will continue to accelerate, potentially reaching trillions in the coming years.
- Secured Finance’s Strategy — How our order book model, stablecoin (USDFC), and constant-maturity bond market address the needs of DeFi 2.0.
- Collaboration Opportunities — Why partnerships with major RWA projects (like Ondo Finance) can unlock further utility and pave the way for fully fledged on-chain capital markets.
Let’s dive in.
1. Institutional Investors’ Inflows into Public Blockchains: The RWA Boom
The State of RWA On-Chain
Real-world assets (RWA) have seen explosive growth on public blockchains over the last year, largely thanks to tokenized fixed-income products. The on-chain RWA TVL — excluding stablecoins — nearly doubled in 2024, with tokenized U.S. Treasuries leading the surge (over 200–300% annual growth). With ~5% yields on T-bills outpacing typical DeFi-native rates, institutions have been quick to experiment on networks like Ethereum and Polygon.
Some key examples include:
- Ondo Finance processed over $2 billion in tokenized Treasury transactions in 2024, offering short-term government bond funds (e.g., OUSG) to on-chain investors.
- BlackRock launched “BUIDL,” a tokenized money market fund on Ethereum, which reached about $500 million in AUM within months of its debut. CEO Larry Fink famously declared, “every stock, every bond […] will be on one ledger.”
- Securitize partnered with top asset managers (KKR, Hamilton Lane) to tokenize private funds on Avalanche and Polygon.
We’ve also seen major players like Franklin Templeton, JPMorgan, and Goldman Sachs run pilots for on-chain issuances or custody. Although current volumes remain in the tens of billions (not yet trillions), the direction is clear. Many analysts project tokenized bonds and credit assets to surpass $1 trillion by ~2028, potentially reaching $2–30 trillion by 2030. Even conservative forecasts foresee strong double- or triple-digit annual growth in the coming years.
1-Year and 3-Year Outlook
- 1-Year (2025)
Expect incremental adoption in the low-single-digit billions of capital on-chain. Regulatory clarity in the U.S. and EU is improving, but major leaps may take time. DeFi protocols like MakerDAO already hold $2–3 billion in real-world assets, and more direct bond tokenization from major banks is likely. - 3-Year (2028)
Tokenization could reach trillions worldwide, especially in bonds and loan markets. BlackRock, Franklin Templeton, and others may frequently issue tokenized funds or debt via public Layer 1 networks. DeFi use cases such as on-chain repo, interest rate swaps, and syndicated loans will start to gain traction as institutional confidence grows. - 5-Year (2030)
Mainstream capital markets on-chain. Leading forecasts suggest $1–3 trillion in RWA, with some bullish scenarios reaching $20–30 trillion (around 10% of global debt). Most major financial institutions could be issuing, trading, and settling yields on a public ledger.
Ultimately, the premise behind these numbers is straightforward: Blockchains enable 24/7 trading, global liquidity, near-instant settlement, and direct asset custody. These strengths become exceptionally appealing for large institutions as compliance and user-friendly infrastructure improve. That’s precisely where Secured Finance intends to play a vital role.
(Sources: CoinDesk, Pantera Capital, McKinsey & Co., BCG Reports)
2. Secured Finance’s Position and Growth Strategy in DeFi 2.0
Our Vision
At Secured Finance, our aim is to build an “interbank-grade” DeFi protocol that mirrors the sophistication and transparency of traditional fixed-income markets — while remaining permissionless and open to all. We believe DeFi 2.0 merges the best of both worlds:
- TradFi Depth: robust order books, standardized bonds, yield curves, and institutional-grade compliance.
- DeFi Openness: permissionless smart contracts, global access, on-chain transparency, and composability.
Here are three core pillars that set Secured Finance apart:
2.1 On-Chain Bond Markets: Order Book Lending
In traditional DeFi lending (Compound, Aave, Maple, etc.), interest rates typically hinge on pool utilization or centralized pool delegates — often opaque and slow to reflect real market conditions.
Secured Finance’s Approach: We built a fully on-chain order book, allowing lenders and borrowers to place bids/offers for specific maturities and rates — much like in Treasury or corporate bond markets. The protocol then matches orders automatically, establishing a transparent, market-driven interest rate.
Advantages
- Real-time price discovery (no single party sets rates).
- Bond-like tokens with defined maturity and face value.
- Secondary trading of loans (one can exit early by selling the bond token).
- Potential for more stable, accurate yields for RWA holders.
Innovation
Maintaining an order book entirely on-chain is technically complex (gas costs, matching efficiency). We address these with optimized data structures and “lazy evaluation” to keep transactions economical.
This order book model represents a major step forward relative to curated pools found in many RWA lending protocols (Maple, Goldfinch). By letting supply and demand set rates dynamically, we aim to create a true yield curve on-chain.
2.2 On-chain Dollars: FIL-Backed Stablecoin (USDFC)
USDFC is a USD-pegged stablecoin issued via over-collateralization with Filecoin (FIL) — somewhat akin to MakerDAO’s DAI but specializing in FIL holders (including institutional storage providers). Anyone holding FIL can deposit it into the protocol (maintaining a 110–150% collateral ratio) and mint/borrow USDFC at a 0% interest rate (with a one-time 0.5% minting fee).
Why USDFC?
- Creates on-chain dollar reserves for the Filecoin ecosystem to help onboard more real-world data assets into the public blockchain.
- Provides a sustainable lending liquidity source for all lending/borrowing and bond trading on Secured Finance protocol (which can also accept RWA tokens as collateral).
- Lets FIL holders access liquidity without selling their tokens.
- Maintains a decentralized, crypto-native ethos (unlike stablecoins fully reliant on off-chain bank deposits).
Ecosystem Synergy
USDFC underpins our markets: borrowers can use it for short-term financing, deposit it in yield strategies, or pair it with bond tokens. While many RWA platforms focus on tokenizing off-chain assets, we wanted to ensure the crypto side stays robust. Positioning USDFC as a MakerDAO-like stablecoin for Filecoin helps us stand out, tapping a large ecosystem that can generate billions in lending volume.
2.3 On-chain T-Bills: Constant Maturity Pools
Secured Finance is planning to introduce Constant Maturity (CM) Pools that allow users to maintain exposure to targeted US Treasury yields (e.g., 3-month or 1-year) without manually rolling positions. Imagine passively earning yield from a rolling 3-month bond strategy.
- User-Friendly
Instead of actively placing orders, investors can deposit stablecoins or USDFC into a CM pool that rebuys short-dated bonds continuously. - Advanced DeFi 2.0
Mirroring constant maturity bond indices in traditional finance, this setup streamlines the user experience for fixed-income investing and arbitrage trading. - Use Case
Retail or DAO treasuries can earn predictable returns on stable assets, and institutions can use CM pools for asset-liability management — matching RWA collateral durations with stablecoin borrow durations to hedge interest rate risk.
We’ve already introduced an on-chain bond market (standardized zero-coupon bonds for BTC, ETH, FIL, and stablecoins). This paves the way for genuinely tradeable crypto bonds — an area that’s still largely unexplored. The synergy with CM pools is significant: a robust bond marketplace behind the scenes powers user-friendly yield pools.
DeFi 2.0: Bridging Institutions & Retail
Our strategic vision is to serve both institutional investors, who demand real-time rate discovery, solid liquidity, and secure infrastructure, and retail users seeking stable yield or accessible lending. Our three guiding principles are:
- Institutional-Grade Framework: Transparent, market-based pricing; strong risk management; and technical reliability.
- Retail Inclusivity: Permissionless access and open participation without forced KYC for pure crypto-collateral use.
- Real Yield: Interest is paid by genuine borrowers, not inflated token rewards, supporting a more sustainable, emissions-free system — fully aligned with the broader DeFi 2.0 push.
3. RWA Collaboration Opportunities
Why Collaborate?
As an example, Ondo Finance provides decentralized, permissionless access to high-quality traditional assets, notably tokenized Treasuries (e.g., OUSG). Ondo is also rolling out Ondo Chain, an L1 designed for institutional RWAs, aiming to address compliance at the chain level. A partnership between Secured Finance and any RWA solution that overcomes compliance hurdles — like Ondo — could supercharge on-chain fixed income:
- RWA as Collateral
Holders of tokenized T-bills (e.g., OUSG) could borrow stablecoins on Secured Finance’s lending markets, effectively creating an on-chain “repo market” secured by T-bills. - Secondary Liquidity & Co-Growth
Ondo’s yield tokens or stablecoins (USDY, for instance) could be listed on Secured Finance’s order book. In return, our retail user base gains easy access to RWA yields, offering a “one-stop shop” for yield and leverage. - Innovative Products
Collaborate on interest rate swaps, derivative markets, or structured tokenized products that link real-world Treasury yields to advanced on-chain trading. Secured Finance’s bond marketplace could also be deployed on dedicated L1s like Ondo Chain for regulated institutions. - Maximizing Utility
Combining RWA tokens with a robust on-chain order book can draw new institutional capital. For example, an institution holding T-bills might finance them on-chain, just like a repo arrangement in traditional finance.
Compliance and permissioning remain challenges (e.g., DID-based privacy-protected onboarding, KYC-ready token gated access), but the synergy is undeniable: RWA platforms bring real-world yields, and Secured Finance brings a next-gen bond market and stablecoin ecosystem. Together, we can help push DeFi 2.0 forward, opening novel channels for capital inflows and deeper TradFi integration.
Conclusion
The tokenization of real-world assets on public blockchains is no longer a fringe experiment — it’s a rising trend poised to reshape traditional capital markets. From short-term Treasuries that deliver safe on-chain yield to eventually multi-trillion-dollar corporate bond issuances, the momentum is undeniable. Over the next five years, we’re likely to see mainstream institutions adopt public blockchains for issuing, trading, and settling interest-bearing assets, propelling DeFi 2.0 into the heart of global finance.
At Secured Finance, our mission is to build the critical fixed-income infrastructure this evolution demands. We do so with:
- A fully on-chain order book that enables market-driven interest rates.
- A FIL-backed stablecoin (USDFC) preserving true decentralization and on-chain dollar liquidity.
- Constant maturity pools and bond tokens to bridging the ease of yield aggregator strategies with true secondary markets.
- A DeFi 2.0 philosophy that embraces both institutional standards and open participation.
By collaborating with RWA leaders (e.g., Ondo Finance) while welcoming a global audience, we hope to become the go-to hub for everyone — from hedge funds and Filecoin storage providers to individual crypto holders — looking to tap into transparent, efficient on-chain fixed income. If tokenizing the world’s bonds, money markets, and treasuries is indeed the next major wave, Secured Finance stands ready with the rails, the rates, and the robust platform to help usher in the future of finance.
Thank you for reading, and stay tuned for more updates on product launches and partnerships!
References & Resources
- RWA Report 2024: Rise of Real World Assets in Crypto — CoinGecko
- Overview of On-Chain RWAs — Galaxy Research
- Introducing Ondo Chain: The Omnichain Network for RWAs
- Here’s How a DeFi Protocol Handles the Tech To Issue Digital Bonds — BTCWire
- Secured Finance: Revolutionizing Finance with Blockchain Innovation — HackerNoon
DeFi Blog Series
- Building Genuine Yield Curve
- Celebrating the 40th Anniversary of Currency Swaps
- The Structured Products Opportunity for Cryptocurrency
- Intro to ‘Yield Curve Play’ for Cryptocurrency
- Building Yield Curve for Decentralized Finance
- Master Plan for the Democratization of the Financial System
- When Traditional Finance Meets DeFi
- A New Dawn for On-chain Fixed Income
Announcements & Whitepapers
- Why the Filecoin Ecosystem Needs a Stablecoin
- Secured Finance Protocol
- The Intersection of the Eurocurrency and Cryptocurrency Markets
(All forward-looking statements are based on industry projections and do not constitute financial or legal advice.)
Secured Finance Official Links
Website | X | GitHub | Galxe | Link3
