Rapid Expansion in Tokenized Treasuries
The value of tokenized U.S. Treasuries has seen a dramatic increase, reaching $622 million this year. This surge underlines the escalating trend of converting real-world assets into digital representations on blockchain platforms.
Tradeteq’s New Initiative on XDC Network
U.K.-based asset marketplace, Tradeteq, unveiled its new initiative by launching tokenized U.S. Treasuries on the XDC Network’s layer 1 blockchain platform earlier this week.
These tokens, termed U.S. Treasury Yield (USTY), stand as digital parallels of U.S. Treasury bond ETF shares. Tradeteq’s platform, Yieldteq, extends accessibility to these tokens exclusively for institutional investors. Securitize, a renowned tokenization service provider, is responsible for the onboarding process, maintaining records of share ownership, and overseeing dividend disbursements.
Tokenization: Reshaping the Digital Asset Landscape
With the digital asset sector facing turbulent times, tokenization has emerged as a beacon of innovation. A recent study by the Bank of America emphasized the game-changing potential of turning traditional financial assets, like government bonds or private equity, into blockchain tokens. Additionally, a projection from Bernstein posits that this market could potentially burgeon to a whopping 5 trillion within the next half-decade.
A notable uptick in the demand for tokenized Treasuries, which has grown almost six times its previous value to $622 million this year, further cements this trend. Various cryptocurrency enterprises and investment pools are gravitating towards these offerings, lured by the allure of better government bond rates, especially as returns from cryptocurrency lending have dwindled due to the bear market’s intensifying deleveraging.
