According to CoinDesk, blockchain-based lending and yield platform OpenTrade has launched a tokenized U.S. Treasury bill pool. The offering is available to individual accredited investors, regulated institutions, companies, funds, and decentralized autonomous organizations. Third-party distributors can also integrate OpenTrade's pool and power their own white-labeled yield offering. Initial distribution partners, direct lenders, and liquidity providers include Enigma Securities, WOO X, Resonate, Kyber Network, and Sino Global Capital, with UK-based structured finance firm Five Sigma providing support for off-chain operations.
Tokenization of real-world assets, such as government bonds, private equity, or credit, has become a popular trend in the crypto industry, with major banks exploring ways to leverage blockchain technology. U.S. Treasuries are considered a gateway for tokenization efforts due to their high yield and low-risk status. The tokenized treasuries market has grown sixfold this year to $668 million, with asset management firm Franklin Templeton being the largest player, according to data by rwa.xyz. OpenTrade's tokenized Treasuries pool was developed using Circle's Perimeter Protocol, an open-source codebase for on-chain credit facilitation, and is powered by the USDC stablecoin.
Following the U.S. Treasury pool, OpenTrade plans to introduce various on-chain yield products, including investment-grade commercial paper and supply chain financing. Founders Dave Sutter and Jeff Handler explained in an interview that the opportunity for trade financing using blockchain rails is particularly attractive, as there is a $2.5 trillion unmet financing demand from market participants, according to a report by the Asian Development Bank. OpenTrade raised $1.5 million in venture capital funding earlier this year from Sino Global Capital, Circle Ventures, Kronos Research, Kyber Ventures, Outlier Ventures, and Polygon Ventures.
