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Crypto Lending Now Pays Less Than Safest US Government Debt

  • Digital space becomes outlier in world of rising rates
  • Would-be lenders stay away as failures shake confidence

Cryptocurrencies are facing a new threat: the lure of Treasuries offering a similar payout for a whole lot less risk.

In a rare reversal, crypto yields that institutions typically seek out have fallen below what the US government pays to borrow for three months, giving the hedge funds and family offices that have flocked to the digital space one less reason to keep investing.