Backed brings tokenization to BlackRock bond ETF

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Backed brings tokenization to BlackRock bond ETF

The tokenization protocol has effectively converted BlackRock's iShares bond ETF UCITS, which tracks a blend of short-term U.S. Treasury bills. The tokenized version has the ticker of blBO1 on it.

But that's just the beginning, said Backed co-founder Adam Levi.

RWA is a real-world asset, such as equities, commodities, art, or collectibles. Base is a layer-2 network built on the blockchain platform by Optimism's OP stack, which is yet another rollup of the optimistic variety that aims to lower costs and ease congestion on Ethereum.

The addition of RWAs is a moment for the fast-paced blockchain network, but it comes at a time when the asset class and tokenization movement have taken center stage of late.

With interest rates high and crypto prices low, various decentralized finance protocols, such as Aave and Maker, have turned to RWAs to generate revenue for the protocols. For example, Maker has already imported U.S. treasuries to generate yield on its native stablecoin called DAI.

Backed's tokenized offerings are designed to prevent investors from trading them.