OpenTrade launches tokenized Treasuries pool

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OpenTrade launches tokenized Treasuries pool

OpenTrade, a blockchain-based lending and yield platform, has launched a tokenized US Treasury bill pool Friday, the company said.

The offering is accessible to individual certified investors, regulated institutions, companies, funds and decentralized autonomous organizations, according to the firm's press release. Third-party distributors can also incorporate OpenTrade's pool and power its own white-labeled yield offering.

OpenTrade's initial distribution partners, direct lenders and liquidity providers include Enigma Securities, WOO X, Resonate, Kyber Network and Sino Global Capital. Five Sigma, a UK-based structure finance firm, provides support for off-chain operations.

The offer comes as the issuance of traditional financial instruments such as government bonds, private equity or credit to blockchain has become one of the hottest trends in crypto, with big banks exploring ways to leverage blockchain technology.

The high yield and low risk profile of U.S Treasuries are considered a gate to tokenization efforts as they are a potential gate for tokenization efforts. The tokenized treasuries market has grown sixfold this year to $68 million, with asset management firm Franklin Templeton the top player, according to data by rwa.xyz.

The tokenized Treasuries pool at OpenTrade was created by Circle's Perimeter Protocol, an open-source codebase for on-chain credit facilitation, and is powered by the USDC stablecoin.

Following the U.S. Treasury pool, OpenTrade plans to introduce a variety of On-Chief yield products including investment-grade commercial paper and supply chain financing, founders Dave Sutter and Jeff Handler said in an interview earlier this week.

The opportunity for trade financing using blockchain rails is particularly attractive, according to the Asian Development Bank, as there's a $2.5 trillion unmet financing demand from market participants.