Definition ∞ Treasury bills are short-duration debt instruments issued by national governments to fund public expenditures, distinguished by their considerable liquidity and low risk profile. These securities are acquired below their face value and redeem at par upon maturity, serving as a prevalent mechanism for governmental short-term borrowing. In conventional financial markets, they rank among the most secure investment options. They represent sovereign short-term obligations.
Context ∞ Treasury bills appear often in cryptocurrency news, especially within discourse on stablecoin collateral and institutional asset management approaches. Reports frequently examine how stablecoin creators employ T-bills to support their digital assets, thereby conferring stability and generating returns. The prevailing interest rates on these government-backed securities can sway the desirability of diverse yield-producing avenues in both traditional and decentralized financial systems.