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El Salvador’s digital asset issuer NexBridge has successfully raised $30 million through its first publicly listed issuance of tokenized U.S. Treasury securities, known as USTBL. This milestone reflects a broader trend in the financial sector, where tokenized treasury bills are gaining traction as an innovative asset class.
The issuance, completed in November via Bitfinex Securities, represents a proportional share of U.S. Treasury assets under management. NexBridge aims to issue up to $200 million worth of USTBL securities, which are built on the Bitcoin blockchain using the Liquid Network, a layer-2 protocol.
USTBL is designed as a regulated public offering, compliant with El Salvador’s securities laws and supervised by the National Commission for Digital Assets. The tokenized securities can be traded on secondary markets, with redemption mechanisms set to begin in March 2025.
“We will offer dynamic mechanisms for redemption, managed directly through the exchanges where USTBL is available,” said Michele Crivelli, founder of NexBridge.
The Rising Wave of Tokenized Treasuries
NexBridge’s initiative aligns with the growing popularity of tokenized Treasury bills. Competing products have emerged from major financial players such as BlackRock, Franklin Templeton, and OpenEden.
For instance, BlackRock’s USD Institutional Digital Liquidity Fund has garnered over $447 million in assets under management since its launch in March 2024. These products capitalize on blockchain technology to offer enhanced liquidity, reduced settlement times, and increased accessibility to U.S. government-backed securities for global investors.
As of December 3, the total value of tokenized government securities on blockchain platforms reached $2.3 billion, according to Dune Analytics, falling slightly short of the $3 billion market forecast for 2024.
Broader Implications of Tokenization
Tokenized assets extend beyond government securities, finding applications in traditionally illiquid markets such as real estate and agriculture. By enabling fractional ownership and easier trading, tokenization is poised to revolutionize asset management.
According to the Global Financial Markets Association (GFMA) and Boston Consulting Group, the value of tokenized illiquid assets could reach $16 trillion by 2030, underscoring the immense potential of this innovation to transform global finance.
Looking Ahead
The success of NexBridge’s USTBL issuance not only strengthens El Salvador’s position as a leader in digital asset innovation but also highlights the transformative power of tokenization. As more institutions explore blockchain-based solutions for traditional finance, tokenized Treasuries could become a cornerstone of the evolving financial ecosystem.
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