KHALED AL KHAWALDEH (ABU DHABI)
Abu Dhabi Global Markets witnessed the launch of its first US-treasury backed token fund which will have tokens available on the blockchain, marking the region's first entrance into an emerging industry of T-bill backed tokens.
Launched by Abu Dhabi firms Realize and Neovision Wealth Management, the investment vehicle will buy units of ETF's focused on US treasury bills that can then be traded as tokens on the IOTA and Etherium blockchain networks.
"The goal is to bring fungible assets on-chain. T-Bills are the most liquid asset today in the real world. They're also the best form of collateral, paying around 5%," Dominik Schiener, co-founder of Realize said in an interview with Reuters.
T-bill backed tokens are digital assets issued on blockchain platforms, representing fractional ownership in US Treasury bills.
These tokens enable investors to gain exposure to the stability and fixed returns of short-term T-bills without directly holding them.
By tokenising T-bills, issuers aim to attract institutional and retail investors seeking lower-risk assets within the crypto space.
The new bill will be issued under the $RBILL token and will represent the fund that Schiener said he hoped would grow to a value of $ 200 million.
Tokenised treasuries are a growing segment of the crypto market, with a market capitalisation of $2.4 billion on public blockchains, primarily Ethereum, according to data platform rwa.xyz.