Coinbase will start trading US Treasury RWA tokens By CriptoFácil

2023-10-06 22:22:58

© Reuters Coinbase to start trading US Treasury RWA tokens

CriptoFácil – Cryptocurrency exchange Coinbase (NASDAQ:) announced a partnership with Swiss tokenization company Backed Finance, thus expanding its offerings to include short-term US Treasury tokens. This news was announced on Friday (06) in a press release from Backed Finance.

This milestone represents the first issuance of a real-world asset (RWA) token on Coinbase’s Base network, which is also home to the popular Friend.Tech social tokenization platform.

Under Swiss tokenized securities legislation, Backed Finance issued the bIB01 crypto token, a blockchain-based version of BlackRock’s (NYSE:) short-term U.S. Treasury Bond Exchange Traded Fund (ETF).

This token offers an annual yield of 5.25% to investors. The offer is available to qualified investors and licensed distributors who have passed the company’s KYC and AML checks. However, US investors and entities are restricted from purchasing the token.

Tokens RWA na Coinbase

The tokenization of real-world assets (RWAs) – an umbrella term that refers to the transformation of traditional financial instruments such as government bonds, private equity or credit into digital tokens and placing them on blockchains – has become one of the hottest trends hot spots in the world of cryptocurrencies this year.

According to a report by the Boston Consulting Group, the market for tokenized assets could grow to US$16 trillion by 2030. Brazil is a pioneer in the sector and the Mercado exchange was the first company to launch RWA tokens on the market in 2018.

US Treasury bonds are considered a gateway to tokenization efforts, as many digital asset investors, fund managers, cryptocurrency companies, and decentralized autonomous organizations (DAOs) seek these products due to their high yield and low risk status.

The tokenized securities market has grown sixfold this year to reach $666 million, with asset management firm Franklin Templeton being the biggest player, according to data from rwa.xyz.

Backed Finance explained that the expansion to Base offers a “cost-effective and user-friendly way for developers to build on the blockchain,” adding that while its code is interoperable with , transaction fees are “ten times cheaper.”

By CriptoFácil