VanEck has launched a new tokenized fund called VBILL that offers investors access to U.S. Treasury bills directly on the blockchain. This puts VanEck in direct competition with BlackRock in the growing space of tokenized real-world assets, particularly tokenized Treasuries.
The new fund is live on Ethereum, Solana, Avalanche, and BNB Chain, giving it greater reach than BlackRock’s BUIDL, which is currently only available on Ethereum. With this launch, VanEck tokenized Treasuries are now accessible across multiple networks, making them easier to use in decentralized finance (DeFi) applications.
How the VBILL Fund Works
VBILL is a fund that holds short-term U.S. Treasury bills, the same type of low-risk assets typically used by large institutions for cash management. However, instead of accessing them through traditional brokers, qualified investors can now buy into the fund using the blockchain.
Reports say the fund is registered in the British Virgin Islands and is only open to accredited investors. Most blockchain networks have a $100,000 minimum investment, but Ethereum has a higher $1 million minimum. The fund accepts USDC for both buying in and redeeming.
To support its multi-chain setup, wrapped versions of VBILL can be moved between blockchains using the Wormhole bridge. VanEck is working with Securitize to handle tokenization and compliance, and the fund’s assets are held with State Street Bank & Trust, a well-known traditional custodian.
Daily price updates (NAVs) are posted on-chain using data from RedStone, giving investors a clear view of the fund’s current value in real time.
Is VanEck Aiming to Compete Directly With BlackRock
BlackRock recently launched its own Ethereum-based tokenized Treasury fund, BUIDL, which has already pulled in hundreds of millions in assets. According to data from rwa.xyz, the total value locked in tokenized government bonds is now over $6.8 billion. BlackRock leads with over $450 million, followed by Franklin Templeton and Ondo Finance.
VanEck is betting that its multi-chain approach will appeal to crypto-native investors and protocols looking for flexible ways to earn yield from stable assets. By launching across four chains at once, VBILL gives investors more ways to put traditional assets to work inside blockchain systems.
Kyle DaCruz, VanEck’s Director of Digital Assets Product, said,
“By bringing U.S. Treasuries on-chain, we are providing investors with a secure, transparent, and liquid tool for cash management.”
Stablecoin Integration Adds Flexibility for DeFi Users
VanEck’s fund also supports instant conversions into a stablecoin called AUSD. This means that accredited investors can move between Treasury exposure and a stable digital dollar without going off-chain or using traditional banks.
This feature is especially useful for trading desks, protocols, and DAOs managing their own treasuries. They can now earn yield from U.S. government debt, then quickly switch to a stablecoin when they need liquidity, all without touching the traditional banking system.
Carlos Domingo, CEO of Securitize, said the launch “merges the best of Securitize’s tokenization model with VanEck’s expertise,” and shows how blockchain can open up new financial opportunities.
While this is currently limited to accredited investors due to regulatory rules, the technology is ready to scale once broader access is approved by regulators.
What About Security and Risk?
Even though the VBILL fund uses trusted institutions like State Street and follows known regulations, moving these assets on-chain still carries some new risks.
One concern is smart contract vulnerabilities. If there’s a bug in the contract, investors’ funds could be at risk. There’s also risk involved with using cross-chain bridges like Wormhole, which in the past have been targeted by hackers. While Wormhole has been improved since then, no system is ever 100% secure.
Another consideration is liquidity. If a lot of investors try to redeem at once, will the system handle it smoothly? These are the kinds of questions that institutional investors are asking before fully jumping in.
But despite those risks, demand for on-chain Treasury products keeps growing, especially among firms already working in crypto who want safer places to park their funds while still staying in the ecosystem.
Conclusion: Tokenized Treasuries Are Gaining Momentum
The launch of VanEck tokenized Treasuries shows how quickly the gap is closing between traditional finance and blockchain-based tools. Only a year ago, most asset managers were still testing the waters. Today, BlackRock, Franklin Templeton, VanEck, and others are competing head-to-head to offer real-world financial products on the blockchain.
Each fund has a slightly different setup. Some stick to Ethereum, others go multi-chain. Some offer instant redemptions into stablecoins, others don’t. But all of them are working toward the same goal: making traditional assets more accessible, programmable, and liquid.
For VanEck, offering a product that’s ready for DeFi from day one, including stablecoin features and cross-chain support, could give them the upper hand in attracting crypto-native users.
FAQs
What are VanEck tokenized Treasuries?
These are digital versions of U.S. Treasury bills offered through VanEck’s VBILL fund, available on Ethereum, Solana, Avalanche, and BNB Chain.
Who can invest in VBILL?
Only accredited investors can buy into the fund, with a minimum of $100,000 for most blockchains and $1 million for Ethereum.
What makes VBILL different from other tokenized funds?
VBILL supports four blockchains from launch and allows for instant redemption into a stablecoin (AUSD), making it more flexible for DeFi users.
Are tokenized Treasuries safe?
They use trusted custodians and follow financial regulations, but still carry some risks from smart contracts and blockchain infrastructure.
Why is VanEck doing this now?
The market for tokenized government debt is growing fast, and VanEck wants to offer institutional investors a modern, blockchain-based option for earning yield.
Glossary
Tokenized Treasuries: U.S. Treasury bills represented as tokens on a blockchain.
Real-World Assets (RWAs): Traditional financial assets, like bonds or real estate, brought on-chain through tokenization.
NAV (Net Asset Value): The current value of the fund’s holdings, calculated daily.
Accredited Investor: A person or entity that meets certain financial criteria and is allowed to invest in private securities.
Stablecoin: A cryptocurrency tied to a stable asset, such as the U.S. dollar.
Wormhole Bridge: A tool that allows tokens to be moved between different blockchains.
Smart Contract Risk: The risk of a flaw or hack in blockchain-based software that manages assets automatically.
Sources
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