Originally published on: November 12, 2024
Libeara and FundBridge Capital have come together to introduce a tokenized United States Treasury bill (T-Bill) fund on the Avalanche (AVAX) network. The Delta Wellington Management Short Treasury On-Chain Fund is designed to offer a transparent, auditable, and efficient way to access US Treasuries on-chain, as mentioned in a recent post on X.
Avalanche stated that the fund is structured to facilitate subscriptions, transfers, and redemptions of tokenized US Treasuries, making it a convenient option for investors. Libeara, a Singapore-based tokenization platform, and FundBridge, known for its compliance tools for investment managers, have collaborated to make this fund a reality.
Mark Garabedian, the director of digital assets and tokenization at FundBridge, highlighted the benefits of leveraging blockchain technology in enhancing access and operational efficiencies for investors interested in US Treasury bills.
The demand for tokenized real-world assets, offering low-risk yield from T-Bills and other money market instruments, is on the rise. Tokenized US treasury debt alone accounts for around $2.3 billion in total value locked, according to RWA.xyz. Major players in this space, such as BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin OnChain US Government Money Fund (FOBXX), manage impressive assets under management (AUM) of approximately $510 million and $450 million, respectively.
Colin Butler, Polygon’s global head of institutional capital, shared insights on the $30-trillion market opportunity presented by tokenized RWAs globally, emphasizing the potential for improved liquidity in the trading of Treasuries through tokenization.
With Avalanche emerging as a popular platform for securities tokenization, the new fund integrates a crypto index portfolio containing Bitcoin (BTC), Ether (ETH), Solana (SOL), Avalanche, and XRP. This innovative offering will likely attract investors looking for diversified options in the digital asset space.
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