Libeara, FundBridge launch US treasury fund on Avalanche

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As a seasoned crypto investor with a knack for spotting promising opportunities, I find the recent development of tokenized US Treasury bills on Avalanche (AVAX) network particularly intriguing. Having navigated through the volatile crypto landscape since its inception, I’ve seen the potential that blockchain technology holds for transforming traditional finance.

As an analyst, I’m sharing the news that Libra and FundBridge Capital are initiating a tokenized U.S. Treasury bill (T-Bill) fund on the Avalanche (AVAX) network, as per a recent announcement on their X platform from November 12th.

According to their announcement, the Delta Wellington Management Short Treasury On-Chain Fund aims to offer a clear, verifiable, and streamlined method for investing in U.S. Treasuries directly through blockchain technology.

As per Avalanche, the structure of this fund allows for purchases (subscriptions), swaps (transfers), and sales (redemptions) of tokenized U.S. Treasury securities.

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In simpler terms, Libra is a tokenization platform based in Singapore, while FundBridge provides compliance solutions specifically designed for investment managers.

According to Mark Garabedian, the Director of Digital Assets and Tokenization at FundBridge, using blockchain technology allows for improved access and increased operational efficiency.

Libeara, FundBridge launch US treasury fund on Avalanche

There’s a growing interest in digital tokens representing real-world assets, particularly those that offer safe returns similar to Treasury Bills and money market tools.

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As per the data from RWA.xyz, around $2.3 billion is currently held in U.S. treasury bonds that have been tokenized.

Two funds, BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin OnChain US Government Money Fund (FOBXX), are among the most substantial in terms of managed assets, holding around $510 million and $450 million, respectively.

Globally, the tokenized Representation of Assets (RWAs), spanning from Treasury Bills to artworks, presents a potential market value of $30 trillion, as mentioned by Colin Butler, Polygon’s head of institutional capital, during an interview with CryptoMoon in August.

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According to the U.S. Department of the Treasury’s Q4 2024 report, tokenization could enhance liquidity in Treasuries trading by minimizing operational and settlement complications.

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.

This investment fund owns a diversified cryptocurrency index that includes Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Avalanche (AVAX), and Ripple (XRP).

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2024-11-12 20:32