VanEck Launches VBILL, a Tokenized U.S. Treasury Fund on Ethereum, Solana, Avalanche, and BNB Chain, Targeting Institutional Crypto Investors

VanEck has launched VBILL, a tokenized U.S. Treasury fund built in partnership with Securitize, marking a bold institutional move into the $3.5 billion crypto tokenization sector.

VanEck, the renowned investment management firm, has taken a significant step into the world of digital assets with the launch of VBILL, a tokenized U.S. Treasury fund built in partnership with Securitize.

This launch marks a crucial moment in the evolution of institutional investing, merging traditional finance's stability with the innovative potential of crypto.

The announcement comes as the broader crypto market adjusts to new lows, with the total market cap dipping 0.4% to reach $3.5 billion on Wednesday.

However, the focus is shifting towards new avenues of growth, especially within the burgeoning sector of asset tokenization, which saw a slight decrease in value this week.

Institutions Are Pivoting to Treasury Tokens

The pressing need for stablecoin issuers to maintain a substantial portion of their reserves in short-term U.S. Treasury bills is also driving this development.

This mandate, currently under review by multiple U.S. states, aims to ensure the stability and solvency of stablecoins, which are frequently used as a medium of exchange within crypto.

“We are proud to partner with VanEck to launch the first tokenized U.S. Treasury fund for institutional investors,” said Carlos Domingo, CEO and Co-founder of Securitize.

“With VBILL, our combined efforts demonstrate tokenization’s ability to create new market opportunities with the speed, transparency, and programmability of blockchain technology.”

This initiative is being undertaken in collaboration with Securitize, a prominent tokenization platform that will provide administrative and broker-dealer compliance support for the fund.

The fund is set to be accessible via four major blockchains: Ethereum, Solana, Avalanche, and BNB Chain, each catering to a specific segment of institutional investors.

The minimum investment amounts vary depending on the chain, ranging from $100,000 on Solana, Avalanche, and BNB Chain to a substantial $1 million on Ethereum.

Moreover, to maintain the integrity of the investment vehicle, only accredited entities and large fund managers will be eligible to register for the fund.

VanEck is targeting high-net-worth crypto holders and institutional investors with VBILL. The fund’s minimum investment requirements are set at, $100,000 on Solana, Avalanche, and BNB Chain, and $1 million on Ethereum. Other key registration requirements are also in place to restrict accessibility  only to accredited entities and large fund managers.

VanEck’s multichain deployment of VBILL ensures whales across different ecosystems, enlisting by Wormhole for cross-chain interoperability and frictionless movement of VBILL tokens across Avalanche, BNB, Ethereum, and Solana chains.

“Tokenized funds like VBILL enhance market liquidity and efficiency,” said Kyle DaCruz, Director of Digital Assets Product at VanEck.

This launch follows reports of BlackRock's BUIDL fund, which is focusing on accumulating Bitcoin in a trust-fund-like structure accessible to institutional investors.

The State of the Asset Tokenization Market

Despite the promising developments, the tokenized asset market experienced a slight downturn this week. As of Wednesday, the sector dipped 0.4% to reach $3.5 billion. The decline was attributed to a decrease in the price of real estate, gold, and Treasury-backed assets.

Asset Tokenization Sector Performance, May 15, 2025 | Source: Coingecko

This cooldown comes as crypto traders displayed a preference for risk-on sentiment following the dovish expectations that greeted US CPI data released on Tuesday.

However, VanEck’s VBILL rollout sparked renewed bullish momentum for its host chains. Ethereum, BNB Chain, Solana, and Avalanche all saw price gains over the last 24 hours,

Aligning with Blackrock’s BUIDL fund initiative, VBILL further emphasizes institutional demand from blockchain-native Treasury products. Multiple stablecoin regulations reviews are ongoing across multiple US states. 

With possible requirements for reserves to be held in short-term Treasuries, tokenized funds like VBILL are well-positioned to become foundational infrastructure for the next phase of cryptocurrency adoption.