Originally published on: November 12, 2024
Libeara and FundBridge Capital have teamed up to introduce a tokenized United States Treasury bill (T-Bill) fund on the Avalanche (AVAX) network. This initiative, known as the Delta Wellington Management Short Treasury On-Chain Fund, aims to revolutionize the way investors access US Treasuries by providing a transparent, auditable, and efficient on-chain solution.
Avalanche revealed that the fund is designed to facilitate subscriptions, transfers, and redemptions of tokenized US Treasuries, offering a seamless user experience. Libeara, a Singapore-based tokenization platform, and FundBridge, known for its compliance tools for investment managers, have joined hands to leverage blockchain technology for enhanced access and operational efficiencies.
Mark Garabedian, FundBridge’s director of digital assets and tokenization, highlighted the significant benefits of blockchain technology in delivering improved liquidity and operational efficiencies. This collaboration represents a milestone in the tokenization of real-world assets, catering to the growing demand for low-risk yield opportunities from T-Bills and other money market instruments.
According to RWA.xyz, the tokenized US treasury debt market has reached around $2.3 billion in total value locked, with notable funds like BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin OnChain US Government Money Fund (FOBXX) managing substantial assets. These tokenized RWAs, spanning from T-Bills to artworks, present a vast $30 trillion market opportunity globally.
Colin Butler, Polygon’s global head of institutional capital, emphasized the transformative potential of tokenization in enhancing liquidity and streamlining trading processes for assets like Treasuries. The United States Department of the Treasury’s Q4 2024 report also acknowledged the role of tokenization in reducing operational and settlement frictions in the trading of securities.
Avalanche has emerged as a leading platform for securities tokenization, offering a secure and efficient environment for digital asset management. The fund’s crypto index portfolio includes assets like Bitcoin, Ether, Solana, Avalanche, and XRP, reflecting a diverse and dynamic investment approach.
As the demand for blockchain-based financial products continues to rise, initiatives like the tokenized US Treasury fund on Avalanche are poised to reshape the traditional investment landscape. By combining cutting-edge technology with regulatory compliance measures, Libeara and FundBridge are paving the way for a new era of transparent and efficient asset management solutions. Stay updated on the latest trends in blockchain and crypto with our Crypto Biz newsletter, delivering key insights and market updates straight to your inbox every Thursday. Subscribe now to unlock a world of financial opportunities in the digital asset space.
