The UAE launches the first tokenized US Treasury bonds! Realize T-BILLS achieves the goal of 200 million AED in on-chain funds.

According to a report by Reuters, RWA company Realize and Neovision Wealth Management, based in Abu Dhabi, have launched an investment tool that involves purchasing U.S. Treasury ETFs and converting these assets into tradable digital tokens on the blockchain.

Target Management Scale Reaches $200 Million, On-Chain Fund Aims to Tokenize iShares and SPDR

RWA company Realize's co-founder Dominik Schiener revealed in an interview that the fund, named Realize T-BILLS Fund, will purchase BlackRock's iShares and State Street's SPDR. It will tokenize the positions of these ETFs and incorporate them into the Realize T-BILLS Fund, aiming to develop into a fund with a scale of $200 million.

The Realize Fund is the first tokenized fund registered in the Abu Dhabi global market, issuing RBILL tokens as the digital representation of fund units, initially launching on the IOTA and Ethereum blockchains.

Seasoned market participants may be familiar with the name Dominik Schiener, who is also the co-founder of the longstanding project IOTA. IOTA is a public chain designed for Web 2 transaction settlements, indicating Dominik Schiener's persistent focus on combining blockchain with Web 2 themes.

Tokenizing National Debt Differs from Traditional Financial Transactions, RBILL to Go Live on IOTA and Ethereum

“Our goal is to introduce alternative assets onto the chain, and treasury bills are the most liquid asset in today's real world.” Dominik Schiener stated. Realize will be responsible for tokenizing the T-BILLS fund, while Neovision will manage it.

According to data from rwa.xyz, the market value of tokenized national debt has reached nearly $2.4 billion. In March of this year, BlackRock launched the first tokenized fund on the Ethereum blockchain named BUIDL, investing 100% of its assets in cash, U.S. Treasury bonds, and repurchase agreements. The current market value of BlackRock's BUIDL fund is $530 million. These types of tokenized national debt are created on the blockchain and backed by U.S. government debt, mainly issued by BlackRock, Franklin Templeton, and a few blockchain companies.

Neovision's co-founder and CEO Ryan Lemand stated: “Purchasing national debt ETFs and tokenizing them is meaningful and different from directly buying treasury bonds in the market.” He pointed out that the biggest difference is that buying cash national debt in the market incurs ongoing trading costs as they need to be purchased repeatedly.