Libeara and FundBridge Capital are launching a tokenized United States Treasury bill (T-Bill) fund on Avalanche (AVAX) network, according to a Nov. 12 post on the X platform.
The Delta Wellington Management Short Treasury On-Chain Fund “aims to provide a transparent, auditable and efficient way to access US Treasuries on-chain,” Avalanche said in the post.
The “fund is structured to support subscriptions, transfers and redemptions of tokenized US Treasuries,” according to Avalanche.
Libeara is a Singapore-based tokenization platform and FundBridge offers compliance tools for investment managers.
"By leveraging blockchain technology, FundBridge can deliver enhanced access and operational efficiencies," Mark Garabedian, FundBridge’s director of digital assets and tokenization, said in a statement.
Source: RWA.xyz
Related: US Treasury: Blockchain can improve financial system
Demand is surging for tokenized real-world assets (RWAs) offering low-risk yield from T-Bills and other money market instruments.
Tokenized US treasury debt commands approximately $2.3 billion in total value locked as of Nov. 12, according to RWA.xyz.
Among the largest in terms of assets under management (AUM) are BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin OnChain US Government Money Fund (FOBXX), with AUM of approximately $510 million and $450 million, respectively.
Tokenized RWAs — from T-Bills to artworks — represent a $30-trillion market opportunity globally, Colin Butler, Polygon’s global head of institutional capital, told Cointelegraph in August.
“Tokenization can potentially improve liquidity in the trading of Treasuries by reducing operational and settlement frictions,” according to the United States Department of the Treasury’s Q4 2024 report.
Avalanche has emerged as a popular platform for securities tokenization.
In September, the Depository Trust and Clearing Corporation (DTCC) — the United States’ central clearinghouse for securities trades — completed a pilot program exploring using tokenized US Treasury bills as trading margin. It used Avalanche’s Evergreen subnet.
Trump’s presidential win is a greenlight for more than half a dozen proposed crypto ETFs waiting on regulatory approval to list in the US.
US regulators are reviewing a request to list the first exchange-traded fund (ETF) to hold a diverse basket of cryptocurrencies, including several altcoins, asset manager Grayscale said on Nov. 4.
The fund holds a crypto index portfolio comprising Bitcoin BTC, ETH, Solana SOL, Avalanche AVAX and XRP XRP.
Magazine: How Chinese traders and miners get around China’s crypto ban