Tokenized U.S. Treasuries Market Surges
The market for tokenized U.S. Treasuries has expanded sixfold in 2023, reaching $666 million, per data from real-world asset analytics provider RWA.xyz. This growth underscores rising demand for blockchain-based traditional financial instruments.
Backed Finance Launches Tokenized Treasuries on Base
Swiss tokenization leader Backed Finance has introduced its short-term U.S. Treasury token (bIB01) on Coinbase’s Base blockchain, marking the first real-world asset (RWA) issuance on the network. The token mirrors BlackRock’s short-term Treasuries ETF, offering a 5.25% annual yield.
👉 Discover how Base blockchain simplifies RWA tokenization
Key Features:
- Regulatory Compliance: Issued under Swiss tokenized securities laws.
- Access Restrictions: Available only to KYC/AML-verified qualified investors; excludes U.S. entities.
- Yield Advantage: Combines crypto accessibility with traditional finance’s low-risk returns.
Why Tokenized Treasuries?
Tokenizing RWAs bridges traditional finance and decentralized ecosystems. U.S. Treasuries are a prime candidate due to:
- High liquidity and creditworthiness.
- Yield appeal in volatile markets.
- Institutional demand from DAOs, crypto funds, and asset managers.
Market Potential
A Boston Consulting Group report projects the tokenized asset market could hit $16 trillion by 2030, driven by efficiency gains and broader accessibility.
FAQs
1. What are tokenized U.S. Treasuries?
Tokenized Treasuries are blockchain-based representations of government bonds, offering tradability and transparency while maintaining the underlying asset’s yield and risk profile.
2. Why is Base blockchain significant for RWAs?
Base provides a low-cost, Ethereum-compatible environment with transaction fees 10x cheaper than Ethereum mainnet, ideal for scalable RWA deployments.
3. Who can invest in Backed’s bIB01 token?
Only non-U.S. qualified investors and licensed distributors who pass KYC/AML checks.
👉 Explore the future of asset tokenization
Key Takeaways
- Backed’s bIB01 pioneers RWA tokenization on Base.
- Tokenized Treasuries offer 5.25% yield with regulatory safeguards.
- The RWA market could grow 1000x+ by 2030, per industry analysts.
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