Tradeteq, a marketplace for private debt and physical assets based in the UK, announced on Tuesday that it had launched a tokenized U.S. Treasury offering on the layer 1 blockchain XDC Network.The U.S. Treasury Yield (USTY) tokens, available to professional investors on Tradeteq’s Yieldteq platform, are blockchain-based representations of shares in a U.S. Treasury bond exchange-traded fund (ETF).Securitize, a supplier of tokenization services, onboards purchasers, keeps track of share ownership, and controls dividend payments.
The launch of the new product coincides with tokenization emerging as one of the most popular developments in the battered digital asset sector.According to a Bank of America report, the tokenization of real-world assets (RWAs), which involves creating blockchain-based tokens of conventional financial assets like government bonds or private equity, could change the financial system. Bernstein predicted that the market for RWAs could reach $5 trillion in the following five years.
According to rwa.xyz, the demand for tokenized Treasury bonds increased by almost six times this year to $622 million.While yields in cryptocurrency lending have fallen due to significant deleveraging during the bear market, crypto companies and investment funds seek these products in order to benefit from rising government bond rates.In a tight race among blockchains to be the best place to trade tokenized assets, XDC has entered the fray.Although other networks are making progress with RWA acceptance, Stellar and Ethereum are the top markets for tokenized Treasuries.utilizing the Polygon (MATIC) network, JPMorgan carried out deals utilizing tokenized versions of the Singapore dollar and the Japanese yen, and Securitize released equity tokens of a real estate investment trust on the Avalanche (AVAX) blockchain.