According to CoinDesk: Tradeteq, a UK-based private debt and real-world asset marketplace, has introduced a tokenized U.S. Treasury offering on the XDC Network. The U.S. Treasury Yield (USTY) tokens represent blockchain-based versions of shares in a U.S. Treasury bond exchange-traded fund (ETF) and are available for professional investors on Tradeteq's Yieldteq platform. Securitize, a tokenization service provider, is responsible for onboarding buyers, tracking share ownership, and managing dividend payouts.
Tokenization of real-world assets (RWAs), such as government bonds or private equity, has become a significant trend in the digital asset industry. A Bank of America report suggests that tokenization could transform the financial infrastructure, while Bernstein predicts it could grow into a $5 trillion market within the next five years. Demand for tokenized Treasuries has increased nearly sixfold to $622 million this year, as per rwa.xyz. Crypto firms and investment funds are seeking these products to benefit from higher government bond rates, while yields in crypto lending have dropped due to massive deleveraging during the bear market.
The XDC Network is competing with other blockchains, such as Stellar and Ethereum, to become the leading market for tokenized Treasuries. Other networks are also making progress with RWA adoption. JPMorgan executed trades with tokenized versions of the Japanese yen and the Singapore dollar using the Polygon (MATIC) network, and Securitize issued equity tokens of a real estate investment trust on the Avalanche (AVAX) blockchain.
