Tokenized Treasury Fund Debuts on Ethereum: Superstate's Answer to Zero-Yield Stablecoins

• Superstate Launches Tokenized U.S. Treasury Fund on Ethereum Blockchain
• Investment Options
• USTB Tokens and Future Plans
• Market Trends and Future Possibilities
• Competition and Current Status

Superstate Launches Tokenized U.S. Treasury Fund on Ethereum Blockchain

Blockchain-oriented asset management firm, Superstate, has reveal its first tokenized U.S. Treasury fund offering on the Ethereum$2,315 -2.42% (ETH) blockchain. This development was announced through a press release on Thursday. Superstate has established a private fund for direct holding of short duration Treasury bills. The main aim is to achieve returns at par with the federal funds rate.

Investment Options

Investors have the flexibility to make deposits either in U.S. dollars or using Circle's USDC stablecoin. In return, they receive USTB tokens symbolizing their investment in the fund. Investors can choose to self-custody these tokens or opt for the custody services provided by Superstate partners, including Anchorage Digital and BitGo.

USTB Tokens and Future Plans

The USTB token has been designed with the intention of providing an alternative to stablecoins for U.S. institutional investors. These include venture capital funds, hedge funds, and digital asset firms, who can utilize their on-chain cash and earn a yield. This was expressed by Robert Leshner, the CEO and founder of Superstate.

Market Trends and Future Possibilities

Superstate's offering aligns with the growing trend of tokenizing traditional financial instruments, like government bonds, on the blockchain. This process is commonly referred to as the tokenization of real-world assets (RWA). Both cryptocurrency firms and global banks are actively exploring the potential of blockchain technology in this context.

U.S. Treasuries are emerging as a popular choice for tokenization efforts, being a low-risk, highly-recognized instrument. They allow investors to park excess on-chain cash and generate a stable yield without leaving the blockchain ecosystem. The popularity of tokenized Treasury assets has exploded, as indicated by the market cap growth to $862 million from $117 million over the past year.

Competition and Current Status

While established asset management firm Franklin$0.0015 -3.24% Templeton leads in this space, newer players like Ondo Finance and Mountain Protocol are rapidly catching up, as per data from rwa.xyz.

At present, Superstate's USTB fund holds $10 million of assets under management, as stated on Superstate's website. This came from seed investments prior to making the fund publicly available.

Edited by Jonathan Stoker