Finblox launches tokenized US treasury bonds, plans series A

Finblox founders Peter Hoang (left) and Dmitriy Paunin / Photo credit: Finblox

In a bid to cater to the increasing appetite among crypto investors for yield-generating traditional assets, Hong Kong-based crypto firm Finblox has launched a new solution that aims to bridge the gap between the crypto and traditional financial realms.

The company’s latest offering takes the form of tokenized rights to US Treasury Bills (T-Bills), providing crypto investors with access to a AAA-rated financial asset. Partnering with smart-contract vault OpenEden, Finblox aims to unlock a trillion-dollar market for Web3 users.

According to the company, stablecoins have failed to provide substantial returns and crypto lending typically carries notable risks, as the recent defaults and insolvencies at digital asset firms show.

Mitigating crypto risks

Tokenizing US T-Bills means converting the rights to these assets into digital tokens that can be traded and held within the blockchain ecosystem. Benefits of this include enabling fractional ownership, which allows users to invest smaller amounts and still earn a proportional yield.

Through the Finblox platform, users can directly benefit from the yield created by these tokenized T-Bills. Treasury Bills have long been regarded as a blue-chip financial asset, offering reliable returns and serving as a benchmark for global financial markets.

They are also debt instruments issued by the US Department of the Treasury to finance the government’s short-term borrowing needs.

Photo credit: Finblox

The integration of OpenEden’s T-Bill vault with decentralized blockchain Chainlink also provides on-chain verification, ensuring that Finblox’s T-Bill tokens are backed by US Treasury securities, USDC stablecoins, and US dollars on a 1:1 basis.

“With T-Bills, we are offering users a real-world asset, while also benefiting from the custody of a regulated financial institution. It’s a seamless and secure bridge for both traditional and emerging markets, bringing safer yields to a wide range of users,” Finblox founder Peter Hoang told Tech in Asia in an interview.

Investors can access Finblox’s T-Bill tokens through a straightforward process.

Initially, they will need to obtain USDC from a reputable exchange, either through Finblox or other exchanges. After completing the know your customer verification process, users can swap their USDC for T-Bills within the Finblox platform.

The generated T-Bill tokens represent a portion of the Treasury bill, which usually offer yields ranging from 4.5% to 5.2%, based on the T-Bills’ performance.

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