“The risk free rate was at five, six percent.” Bhaji Illuminati, CEO at Centrifuge, made that point at ETHDenver 2026 — and it explains much of the recent RWA acceleration.
Earlier cycles struggled with “adverse selection bias.” There simply wasn’t enough on-chain demand. But once T-bill yields moved above 5%, stablecoin allocators had a reason to rotate capital. A tokenized T-bill fund reaching “about 600 million” reflects that shift.
They also emphasized “instant liquidity” versus quarterly redemptions — and noted demand is coming primarily from “on-chain capital allocators,” not new off-chain money.
The structural signal: ✅ Yield differentials matter more than narratives ✅ Stablecoins are becoming deployable balance sheets ✅ Liquidity design is a competitive advantage ✅ On-chain capital is recycling internally before attracting new inflows
RWA growth here looks less like outside capital entering crypto — and more like crypto-native balance sheets maturing into fixed-income allocators.
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