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OpenTrade Leads the Tokenization Race with New Tokenized U.S. Treasuries Offering

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Oct 4, 2023 at 05:48 am

The market for tokenized U.S. Treasuries has experienced an impressive sixfold surge this year, reaching a substantial $668 million, as reported by a reputable data provider.

OpenTrade, a blockchain-driven lending and yield platform, has recently unveiled a pool of tokenized U.S. Treasury bills, marking a significant milestone for the company.

According to the official press release, this offering is accessible to a wide range of participants, including individual accredited investors, regulated institutions, companies, funds, and decentralized autonomous organizations. Moreover, third-party distributors have the option to seamlessly integrate OpenTrade's pool, enabling them to power their own customized white-labeled yield solutions.

Enigma Securities, WOO X, Resonate, Kyber Network, and Sino Global Capital are among OpenTrade's initial distribution partners. This roster encompasses direct lenders and liquidity providers. For off-chain operations, the UK-based structured finance firm, Five Sigma, provides essential support.

This move coincides with the growing trend of tokenizing traditional financial instruments like government bonds, private equity, or credit onto blockchain—a phenomenon commonly referred to as the tokenization of real-world assets (RWA). This trend has gained substantial traction in the crypto sphere, with major banks exploring ways to leverage blockchain technology.

U.S. Treasuries are considered prime candidates for tokenization efforts due to their reputation for offering high yield coupled with low-risk status. The tokenized treasuries market has witnessed a sixfold surge this year, reaching an impressive $668 million. Leading this charge is asset management firm Franklin Templeton, as indicated by data from rwa.xyz.

OpenTrade's tokenized Treasuries pool was meticulously crafted using Circle's Perimeter Protocol—an open-source codebase tailored for on-chain credit facilitation—and is fueled by the USDC stablecoin.

Looking ahead, OpenTrade has ambitious plans to introduce a diverse range of on-chain yield products. This includes investment-grade commercial paper and supply chain financing, as revealed by founders Dave Sutter and Jeff Handler in an interview with Bitsday earlier this week.

They emphasized the significant potential in trade financing utilizing blockchain rails. A report from the Asian Development Bank highlights an unmet financing demand of a staggering $2.5 trillion from market participants, underscoring the attractiveness of this opportunity.

Earlier this year, OpenTrade successfully secured $1.5 million in venture capital funding from a consortium of esteemed investors, including Sino Global Capital, Circle Ventures, Kronos Research, Kyber Ventures, Outlier Ventures, and Polygon Ventures. This financial backing underscores the confidence in OpenTrade's innovative approach to blockchain-based lending and yield solutions.

Read more: Snook Unleashes Gaming Revolution on Arbitrum: Play, Earn, and Explore with USDC Rewards!

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