Base Dominates Tokenization with On-Chain Treasuries

Explore how Backed Finance and Coinbase’s Base are revolutionizing the financial sector by introducing tokenized BlackRock ETFs.

Investor holding up his cash about to take it to the US treasuries.
Created by Kornelija Poderskytė from DailyCoin
  • Switzerland-based Backed Finance introduces tokenized U.S. Treasuries.
  • Tokenization of real-world assets emerges as a dominant trend in the crypto space.
  • U.S. Treasuries become a focal point for tokenization.

In an era where digital transformation is reshaping the financial sector, tokenization is a groundbreaking trend. Most recently, the crypto world witnessed a significant milestone as Switzerland-based Backed Finance expanded its tokenized U.S. Treasury offering to Coinbase’s Base blockchain

Base Gets Tokenized Treasuries, BlackRock ETF With Partnership

Tokenization, converting real-world assets into digital tokens, has seen a surge in popularity. Backed Finance, a Switzerland-based tokenization firm, has taken a monumental step. On Friday, October 6, the firm launched its tokenized version of BlackRock’s short-term U.S. Treasuries ETF on Coinbase’s Base blockchain. 

This move is not just a first for the Base network but also signifies the growing potential of tokenized real-world assets (RWAs). Adam Levi, Backed co-founder, emphasizes the vast potential, stating, “We can tokenize anything held in a bank account.”

The Broader Landscape of Tokenization

The allure of tokenization is undeniable. By placing traditional financial instruments on a blockchain, it offers increased transparency, security, and accessibility. The Base network, incubated by Coinbase, provides an optimal platform for such endeavors, especially with its promise of reduced transaction fees and enhanced scalability.

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The tokenization of U.S. Treasuries is just the tip of the iceberg. The market for RWAs is burgeoning, with projections indicating a potential worth of $16 trillion by 2030. This growth is fueled by the appeal of U.S. Treasuries, known for their high yield and low-risk nature, making them a prime candidate for tokenization.

On the Flipside

  • The world of tokenization, while promising, is not without challenges. Regulatory constraints, especially for U.S. investors, can pose significant barriers. 
  • While the growth of tokenized assets has been significant, major institutions still haven’t fully committed to the space. 

Why This Matters

Tokenization democratizes access to financial assets. By converting traditional assets like BlackRock’s ETFs and U.S. Treasuries into digital tokens, a broader audience can access and trade these assets without the traditional barriers of entry. 

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Read more about Base’s growth since launch: 
Coinbase’s Base Network Surpasses Solana in Total Value Locked

Read more about Polylang and its potential impact on Polygon: 
Is Polylang a Game Changer Polygon Midden Smart Contracts?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.