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Tokenized U.S. Treasuries Gain Momentum on XDC Network Amidst Growing Digital Bond Market
Surge in Tokenized U.S. Treasuries
The value of tokenized U.S. Treasuries has experienced a significant surge, reaching $622 million this year. This trend highlights the increasing inclination to convert real-world assets into digital representations on blockchain platforms.
Tradeteq's Innovative Move
Tradeteq, a UK-based asset marketplace, has taken a pioneering step by introducing tokenized U.S. Treasuries on the XDC Network's layer 1 blockchain platform. This initiative, named U.S. Treasury Yield (USTY), involves creating digital counterparts of U.S. Treasury bond ETF shares. The platform, known as Yieldteq, offers exclusive access to these tokens for institutional investors. The renowned tokenization service provider, Securitize, is responsible for onboarding, maintaining ownership records, and managing dividend disbursements.
Reshaping the Digital Asset Landscape
Amidst the challenges faced by the digital asset sector, tokenization has emerged as a beacon of innovation. A Bank of America study underscores the transformative potential of converting traditional financial assets, such as government bonds or private equity, into blockchain tokens. Additionally, Bernstein predicts that this market could potentially grow to a staggering $5 trillion within the next five years.
The burgeoning demand for tokenized Treasuries, which has witnessed nearly a sixfold increase to $622 million this year, solidifies this trend. Cryptocurrency enterprises and investment pools are increasingly drawn to these offerings, enticed by the prospect of superior government bond rates. This allure comes especially as returns from cryptocurrency lending have dwindled due to the intensifying deleveraging of the bear market.
