French fintech company Spiko has deployed its money market funds on Arbitrum One, bringing institutional-grade investment assets to the layer-2 blockchain.
According to a Jan. 28 announcement, Spiko’s tokenized US and EU T-Bill Money Market Funds are now available on Arbitrum One. The funds are regulated under the European Commission’s Undertakings for Collective Investment in Transferable Securities (UCITS), which provides a framework for selling mutual funds.
Net assets held by Spiko’s US T-Bills Money Market Fund have grown by 8% over the past 30 days, reaching more than $50 million, according to RWA.xyz. The fund offers an annual percentage yield (APY) of 4.37%.
Its EU T-Bills Money Market Fund has a total of $95.1 million in assets, seeing growth of 10.9% over the past month.
The Spiko US T-Bills Money Market Fund has more than $50 million in assets spread across the Ethereum and Polygon networks. Source: RWA.xyz
The market for tokenized US Treasury assets is growing rapidly, with Ondo Finance announcing on Jan. 28 that it was deploying its Short-Term US Government Treasuries (OUSG) on the XRP Ledger. The combined value of tokenized Treasury assets is currently $3.43 billion, according to RWA.xyz data.
Related: Tokenized bond market may 30x by 2030 — Fintech exec
RWA tokenization could thrive under Trump administration
US President Donald Trump’s pro-cryptocurrency policies could also extend to real-world asset tokenization (RWA), according to attorney Eli Cohen, who works with tokenization platform Centrifuge.
Cohen told Cointelegraph that the new administration could deliver “a very public renouncement and repudiation” of anti-crypto policies, which could further encourage RWA market participation.
“This will open up banking and brokerage channels to spur the creation of many more tokenized products,” said Cohen.
Although fintechs and blockchain companies are fueling the RWA tokenization boom, traditional financial institutions will be the main catalysts of mainstream adoption, according to Bitfinex Securities head of operations Jesse Knutson.
“It’s the more nimble institutions, the fast movers, like the family offices, those kind of guys. I think they’ll have an outsized impact in these early days,” Knutson told Cointelegraph on the sidelines of the Plan B Lugano conference in November.
“But eventually — the benefits of tokenization — they’re going to pull in the mainstream institutional investors,” he said.
Related: BlackRock CEO wants SEC to ‘rapidly approve’ tokenization of bonds, stocks: What it means for crypto