Blockchain-Based Lending Platform OpenTrade Joins Asset Tokenization Race with Tokenized US Treasuries Offering
OpenTrade, a blockchain-based lending and yield platform, has unveiled a new tokenized U.S. Treasury bill pool. This pool is accessible to individual accredited investors, regulated institutions, companies, funds, and decentralized autonomous organizations. Additionally, third-party distributors have the option to integrate OpenTrade’s pool and create their own white-labeled yield offerings.
Some of OpenTrade’s initial distribution partners, including Enigma Securities, WOO X, Resonate, Kyber Network, and Sino Global Capital, will be the direct lenders and liquidity providers for this initiative. Five Sigma, a UK-based structured finance firm, will offer support for off-chain operations.
The tokenized treasuries market has experienced significant growth this year, with a sixfold increase to $668 million. Franklin Templeton, an asset management firm, stands out as the prominent player in this sector. Tokenizing U.S. Treasuries is an attractive endeavor due to their high yield and low-risk characteristics.
OpenTrade’s tokenized Treasuries pool was developed using Circle’s Perimeter Protocol, an open-source codebase for on-chain credit facilitation. The pool is powered by the USDC stablecoin.
Moving forward, OpenTrade plans to introduce various on-chain yield products, such as investment-grade commercial paper and supply chain financing. Founders Dave Sutter and Jeff Handler explained that trade financing using blockchain rails is especially enticing, as there is a $2.5 trillion unmet financing demand from market participants, according to a report by the Asian Development Bank.
Earlier this year, OpenTrade secured $1.5 million in venture capital funding from notable investors, including Sino Global Capital, Circle Ventures, Kronos Research, Kyber Ventures, Outlier Ventures, and Polygon Ventures.
OpenTrade’s tokenized U.S. Treasury bill pool represents a significant step towards expanding the capabilities of blockchain technology in the lending and yield industry. As more participants join this innovative platform, the potential for growth and financial inclusion will further strengthen the market. Additionally, the utilization of blockchain rails for trade financing has the potential to address the significant unmet financing demand, providing a more efficient and inclusive financial ecosystem.
