El Salvador Launches First Tokenized US Treasury Bill
On November 19, El Salvador officially announced the issuance of the world's first digital financial product in the form of a US Treasury bill named USTBL. This product is implemented through the Digital Asset Securities Law, enacted in January 2023, aimed at making it easier for individuals and organizations to invest in this traditional financial asset class.
USTBL is built on the Liquid Network, a Layer-2 solution of Bitcoin, allowing the people of El Salvador to invest in short-term US Treasury bills with an annual yield of 5.02%. Investors can use USDT to purchase this token, and in the future, there will be an option to pay with Bitcoin. After the registration period ends on November 29, USTBL will be listed on the Bitfinex Securities exchange.
USTBL is backed by the short-term US Treasury bond ETF from BlackRock. This product not only helps diversify investment portfolios but also marks an important step in integrating digital assets with traditional finance. However, this product is not available to investors from North America or sanctioned countries.
The launch of USTBL not only reflects the rapid development of the tokenized US Treasury bill market but also strengthens El Salvador's position in the global blockchain revolution. The country continues to lead with initiatives such as legalizing Bitcoin, building the “Bitcoin City,” and mining $BTC with volcanic energy. This event marks a significant turning point, paving the way for the development of many other digital financial products.