Backed Finance launches tokenized short-term U.S. Treasury Bond ETF based on Base

Author: Bessie Liu, Blockworks; Compiler: Songxue, Golden Finance

Backed Finance, a Swiss-based company focused on bringing real-world assets on-chain, has launched blB01, a tokenized short-term U.S. Treasury bond ETF, on Coinbase’s second-layer network Base.

The company claims it will be the first tokenized security offered on Base and will be issued under Switzerland’s Distributed Ledger Technology (DLT) Act.

Backed Finance noted that under the DLT Act, all tokens must be fully collateralized and transferable between wallets.

Backed co-founder Adam Levi pointed out that this means that for every token in circulation, the third-party custodian holds an equal amount of the underlying asset.

Levi said: “In the case of bIB01, the underlying asset is the iShares Treasury Bond 0-1yr UCITS ETF (IB01), which tracks the investment results of an index consisting of U.S. dollar-denominated government bonds issued by the U.S. Treasury, with the remainder The term is between 0 and 1 year.”

Levi added that Backed is not affiliated with BlackRock and its tokens are not iShares products.

Only accredited investors and licensed retailers who have gone through Backed KYC and obtained anti-money laundering qualifications can purchase tokenized securities from Backed.

None of Backed's financial assets are registered as U.S. securities, a fact the company noted has no intention of changing. This means that Backed’s tokens are only available to people outside the United States.

The support team currently has nine tokenized products, including tokenized equities and fixed income. According to DeFiLlama, the project currently has over $46 million in total value locked (TVL).

“We plan to bring more on-chain services based on customer demand – we are already seeing a lot of interest as our tokenized solutions allow our customers to access these products without directly interacting with [traditional finance] . If there is demand, we will be happy to tokenize the requested securities,” Levi said.

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