Author: Bessie Liu, Blockworks; Translation: Song Xue, LianGuai
Backed Finance is a Switzerland-based company dedicated to bringing real-world assets onto the blockchain. The company has issued blB01 on Coinbase’s Layer 2 network Base, which is a tokenized short-term US Treasury bond ETF.
The company claims that this will be the first tokenized security offered on Base and will be issued in accordance with Switzerland’s Distributed Ledger Technology (DLT) Act.
Backed Finance states that under the DLT Act, all tokens must be fully collateralized and transferable between wallets.
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Adam Levi, co-founder of Backed, pointed out that this means that for every circulating token, a third-party custodian holds an equivalent amount of underlying assets.
Levi said, “In the case of bIB01, the underlying asset is the iShares Treasury Bond 0-1yr UCITS ETF (IB01), which tracks the performance of an index composed of US government bonds denominated in US dollars with a remaining maturity of 0 to 1 year.”
Levi added that Backed is not affiliated with BlackRock, and its tokens are not iShares products.
Only qualified investors and licensed retailers who have undergone Backed’s KYC process and obtained anti-money laundering qualifications can purchase tokenized securities from Backed.
Backed’s financial assets are not registered as securities in the United States, and the company has no intention of changing this fact. 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 stocks and fixed income. According to DeFiLlama’s data, the project currently has a total locked value (TVL) of over $46 million.
“We plan to bring more on-chain services based on customer demand. We have seen significant interest because our tokenization solution allows our customers to access these products without directly interacting with [traditional finance]. If there is demand, we are happy to tokenize the requested securities,” said Levi.
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