Backed Finance, a prominent player in the arena of real-world asset tokenization, has made a significant stride by successfully launching the inaugural tokenized security on Coinbase’s Layer Two (L2) blockchain, known as Base. In a pivotal move, the team unveiled the bIB01 tokens to the realm of decentralized finance (defi), meticulously replicating the price dynamics of the Ishares short-term Treasury bond Exchange-Traded Fund (ETF).
Tokenizing U.S. Bonds within Coinbase’s L2 Ecosystem
Backed Finance’s accomplished team proudly announces the triumphant tokenization of real-world assets within the Base blockchain network. These tokens, aptly named “b tokens” or Backed Tokens, take the form of ERC20 coins, each representing ownership of structured product units. Each such token corresponds to a fully collateralized tracker certificate, meticulously mirroring the listed value of a specific traded security. It’s imperative to note that these tokens derive their intrinsic value from the underlying security they are unequivocally tied to, as stated by Backed.
“On October 6, 2023, Backed made history by launching the pioneering tokenized security on Base, denominated as bIB01, representing a tokenized short-term U.S. treasury bond ETF. Coinbase’s L2 network, Base, presents an economically efficient and developer-friendly avenue for on-chain development,” revealed the team.
Regrettably, Backed’s bIB01 tokens are not accessible to U.S. residents. Nonetheless, they cater to eligible participants in the cryptocurrency market, offering exposure to U.S. dollar-denominated, regulatory-compliant government bonds from the U.S. Treasury. Backed emphasizes that these tokens harness the advantages of blockchain technology. Giorgio Giuliani, Backed’s Head of Product, expressed optimism, stating, “We eagerly anticipate witnessing Base’s commitment to being developer-friendly.”
It is pertinent to mention that while U.S. investors are precluded from accessing b tokens, prospective investors must satisfactorily meet stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) prerequisites. Backed is not the sole entrant in the endeavor to usher Treasury bills into the tokenized sphere; Truefi is also in the fray with its tokenized T-bills. As the boundaries between blockchain and conventional finance continue to blur, formidable contenders like Ondo, Flux, and Pendle have emerged, further bolstering the fusion of real-world assets with defi protocols.
We invite you to share your insights and perspectives on Backed’s pioneering initiative to introduce T-bill tokens on the Base platform. Kindly share your thoughts and opinions in the comments section below.
Frequently Asked Questions (FAQs) about Tokenized Treasury Bond ETF
What is Backed Finance’s achievement on Coinbase’s Base?
Backed Finance has successfully tokenized a Treasury bond ETF on Coinbase’s Base, marking a significant milestone in the realm of decentralized finance (defi).
What are “b tokens”?
The “b tokens,” also known as Backed Tokens, are ERC20 coins representing ownership of structured product units. Each token corresponds to a fully collateralized tracker certificate, mirroring the listed value of a specific traded security.
What does “bIB01” signify?
“bIB01” is the designation for the first tokenized short-term U.S. Treasury bond ETF introduced by Backed Finance on Base, Coinbase’s Layer Two (L2) blockchain.
Can U.S. residents access these tokens?
No, Backed’s bIB01 tokens are not available to U.S. users. They cater to eligible cryptocurrency market participants but exclude U.S. residents.
What advantages does Base offer for this tokenization?
Base, Coinbase’s L2 network, provides a cost-effective and developer-friendly environment for on-chain development, making it an ideal platform for tokenizing assets.
What regulatory requirements must potential investors meet?
Prospective investors must meet stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) standards to participate in this tokenized offering.
Are there other contenders in tokenizing Treasury bills?
Yes, Truefi is also involved in tokenizing Treasury bills. Furthermore, several other projects, including Ondo, Flux, and Pendle, are actively working on merging real-world assets with defi protocols.
More about Tokenized Treasury Bond ETF
- Backed Finance Official Website
- Coinbase Base – Official Announcement
- Ishares Short-Term Treasury Bond ETF Information
- Coinbase’s Layer Two (L2) Blockchain
- Know Your Customer (KYC) and Anti-Money Laundering (AML) Standards
- Truefi – Tokenizing Treasury Bills
- Ondo – Defi Project
- Flux – Decentralized Finance Platform
- Pendle – Asset Tokenization Project