Originally published on: November 12, 2024
Libeara and FundBridge Capital have unveiled a groundbreaking initiative, introducing a tokenized United States Treasury bill (T-Bill) fund on the innovative Avalanche (AVAX) network. The Delta Wellington Management Short Treasury On-Chain Fund is set to revolutionize access to US Treasuries by providing transparency, auditability, and efficiency in a secure on-chain environment.
Avalanche highlighted the fund’s goal of enabling seamless subscriptions, transfers, and redemptions of tokenized US Treasuries, offering a new level of accessibility to this traditional asset class. Libeara, a Singapore-based tokenization platform, and FundBridge, renowned for its compliance tools for investment managers, have joined forces to bring this cutting-edge solution to the market.
Mark Garabedian, Director of Digital Assets and Tokenization at FundBridge, emphasized the advantages of leveraging blockchain technology to enhance access and operational efficiencies for investors. With the demand for tokenized real-world assets (RWAs) on the rise, particularly in low-risk yield instruments like T-Bills, this new fund is poised to meet the needs of modern investors seeking innovative financial solutions.
According to RWA.xyz, the tokenized US treasury debt market has already reached a total value of around $2.3 billion, with major players like BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin OnChain US Government Money Fund (FOBXX) managing significant assets under management. As the global market for tokenized RWAs, including T-Bills and artworks, continues to expand, there is a projected $30 trillion opportunity awaiting savvy investors.
Colin Butler, Polygon’s global head of institutional capital, highlighted the potential benefits of tokenization in improving liquidity and reducing operational complexities in trading Treasuries. The United States Department of the Treasury also acknowledged the transformative impact of blockchain technology in enhancing trading efficiency and settlement processes.
Avalanche has emerged as a leading platform for securities tokenization, showcasing its versatility by incorporating a diverse crypto index portfolio comprising Bitcoin (BTC), Ether (ETH), Solana (SOL), Avalanche, and XRP. This strategic move positions the fund as a comprehensive solution for investors looking to diversify their portfolios and access new investment opportunities.
In a rapidly evolving financial landscape, the launch of the tokenized US Treasury Bill Fund on the Avalanche network marks a significant milestone in the intersection of traditional finance and blockchain technology. By combining the expertise of Libeara, FundBridge, and the innovative capabilities of Avalanche, this initiative paves the way for a new era of digital asset management and investment strategies.
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