Originally published on: November 12, 2024
Libeara and FundBridge Capital have collaborated to introduce a groundbreaking tokenized United States Treasury bill (T-Bill) fund on the Avalanche (AVAX) network. This innovative initiative, named the Delta Wellington Management Short Treasury On-Chain Fund, is designed to offer a transparent and efficient pathway to access US Treasuries on-chain.
By leveraging the capabilities of blockchain technology, FundBridge aims to enhance access and operational efficiencies for investors. Mark Garabedian, FundBridge’s director of digital assets and tokenization, highlighted the potential of blockchain to revolutionize the financial landscape.
The demand for tokenized real-world assets (RWAs) is on the rise, particularly for low-risk yield options such as T-Bills and other money market instruments. Tokenized US treasury debt currently boasts a total value locked of approximately $2.3 billion, showcasing the growing interest in this emerging market.
Leading the pack in terms of assets under management (AUM) are the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin OnChain US Government Money Fund (FOBXX), with AUM nearing $510 million and $450 million, respectively. The tokenization of RWAs, spanning from T-Bills to artworks, presents a massive $30 trillion global market opportunity.
Avalanche has positioned itself as a preferred platform for securities tokenization, catering to the evolving needs of investors in the digital age. The fund features a diversified crypto index portfolio, including big names like Bitcoin (BTC), Ether (ETH), Solana (SOL), Avalanche, and XRP.
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