What a bank would do — and what you do instead
A bank pays you interest on savings and lends your deposit out behind the scenes, with deposit insurance as a backstop. On-chain, you can see the lending directly: you supply stablecoins, borrowers pay interest, and the rate moves with demand. You keep custody of the position and can usually exit any time, but you also take on the risks a bank and its insurer would normally absorb. That is why every rate here is dated, labeled variable and compared with an insured baseline.
How they work
An asset manager buys short-term Treasury bills and holds them with a custodian. It then issues tokens on a blockchain that represent shares in that fund. As the Treasuries pay interest, either the token price rises or holders receive more tokens.
This is closer to a money-market fund than a bank account. Stablecoin issuers hold similar assets as reserves — but under the GENIUS Act they cannot pass that interest to holders. Tokenized T-bill funds are designed to pass it through, which is why many are treated as securities.
Compared with alternatives
Bank vs. self-bank
Rates are assumptions you can edit, compounded monthly and held constant — real rates move. Taxes and fees are not included. Past yields don’t predict future yields.
Education only, not financial advice. Rates change and are not guaranteed. CoinPayBank is not a bank.
SourcesBefore you buy one
Frequently asked questions
Is a tokenized T-bill the same as a stablecoin?
No. A stablecoin aims to stay at $1 and, under the GENIUS Act, its issuer cannot pay you yield. A tokenized T-bill fund is designed to pass Treasury interest through to holders.
Can anyone buy them?
Not always. Many funds restrict buyers by location or investor status. Check the fund’s own eligibility rules.
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