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Libeara and FundBridge Capital bring US Treasury investments onchain with the Ultra Fund, boosting blockchain finance.
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Libeara, a blockchain asset tokenization platform, and FundBridge Capital, a fund management infrastructure, have launched a tokenized United States Treasurys fund on a public blockchain for investors.
Dubbed the “Delta Wellington Ultra Short Treasury On-Chain Fund, or Ultra Fund, the offering gives investors digital access to US Treasurys.
Through Libeara’s Delta platform, the fund is structured to support subscriptions, transfers and redemptions of tokenized units and aims to provide a transparent, auditable and efficient fund management solution.
The Ultra Fund will initially be deployed on the Ethereum mainnet, with plans to expand to Arbitrum, Avalanche and Solana to broaden access for crypto investors.
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Web3 demands for secure investments
Libeara’s platform will allow users to interact with tokenized units through distributed ledger technology, a move Libeara founder and CEO Aaron Gwak called “a significant step forward.”
Gwak said the fund brings “institutional credibility to USD-denominated investments,” likening it to the SGD Delta Fund — a tokenized Singapore dollar-denominated fund.
The established fund opens new digital and Web3 avenues for investors to access US Treasurys while also promoting the adoption of blockchain tech in mainstream finance.
Related: International agencies report on tokenization to G20 officials
Convergence implications
The Ultra Fund combines traditional finance (TradFi) with blockchain tech to enable financial institutions to adopt tokenization for improved accessibility while cutting operational costs.
Wellington Management, a global asset management firm, the sub-manager of the fund, provides a supporting role to help bridge the fund to draw in institutional and Web3 investors.
Mark Garabedian, the director of digital assets and tokenization at Wellington Management, expressed his view that tokenization represents “a new frontier” for asset management.
He added that FundBridge’s approach aligns with Wellington’s and can deliver “enhanced access and operational efficiencies to clients.”
Related: Mastercard, Standard Chartered test tokenized deposit transaction
Moving mainstream
Standard Chartered Bank, a global bank headquartered in London, will be acting as custodian for the fund and sees the collaboration as part of its goal to support its clients seeking digital asset exposure.
As a known advocate for cryptocurrencies, the firm’s involvement in the collaboration comes as no surprise after the Bank’s analyst Geoff Kendrick predicted Bitcoin (BTC) would reach $125,000 by the end of the year.
Kendrick speculated that the BTC price would reach $73,000 by the US presidential election on Nov. 5, expecting the price to continue its ascent if former Republican President Donald Trump gets elected for a second term.
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This article first appeared at Cointelegraph.com News
