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Libeara and FundBridge launch $2.3B US treasury fund

Libeara and FundBridge launch $2.3B US treasury fund

GrafaGrafa2024/11/13 08:00
By:Isaac Francis

Libeara and FundBridge Capital have launched a tokenised U.S. Treasury bill fund on the Avalanche (CRYPTO:AVAX) network, according to a Nov. 12 announcement on the X platform.

The Delta Wellington Management Short Treasury On-Chain Fund is designed to offer transparent and efficient access to U.S. Treasuries, based on Avalanche's statement.

This new fund facilitates the subscription, transfer, and redemption of tokenised U.S. Treasury assets.

Libeara, headquartered in Singapore, is a platform focused on asset tokenisation, while FundBridge Capital provides compliance tools aimed at supporting investment managers.

“By leveraging blockchain technology, FundBridge can deliver enhanced access and operational efficiencies,” emphasized Mark Garabedian, FundBridge’s director of digital assets and tokenisation.

According to data from RWA.xyz, there is growing demand for tokenised real-world assets (RWAs), such as Treasury bills, due to their low-risk yield.

The value locked in tokenised U.S. Treasury debt stands at approximately $2.3 billion as of Nov. 12.

The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and the Franklin OnChain U.S. Government Money Fund (FOBXX) are among the major funds in this space, managing assets of about $510 million and $450 million, respectively.

Colin Butler, global head of institutional capital at Polygon, previously highlighted in August that tokenised RWAs represent a $30 trillion market opportunity globally.

"Tokenisation can potentially improve liquidity in the trading of Treasuries by reducing operational and settlement frictions," stated the U.S. Department of the Treasury in its Q4 2024 report.

Avalanche has gained traction as a platform for securities tokenisation.

In September, the Depository Trust and Clearing Corporation (DTCC) completed a pilot program using tokenised U.S. Treasury bills for trading margin on Avalanche's Evergreen subnet, showcasing the network’s potential for supporting financial innovations.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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