ChainCatcher reported that according to The Block, FalconX has launched tokenized Treasury bond fund transactions as some investors have increased interest in securities issued by the US government.
The crypto-focused prime brokerage executed its first trade on June 11, a FalconX representative told The Block. USTBs are digital tokens representing short-term bonds issued by the U.S. government that can be traded on a public blockchain.
The company’s support for the token comes as U.S. Treasuries continue to offer yields above 5%, after the Federal Reserve raised interest rates to curb inflation. As a result, some risk-averse traders are investing in digital assets backed by Treasuries rather than stablecoins, which could experience price volatility if they decouple from the underlying asset.