Introduction
Tokenization is rewriting the rules of fixed income. Instead of waiting days for settlement, investors can now hold fractions of U.S. Treasury bills on a blockchain. Even better, now investors can trade 24/7. No more waiting for the market to open or for settlement, tokenized US treasuries can be traded instantly and the money is in your wallet within seconds. This article explains what tokenized treasuries are, how they work, and whether they’re right for you.
What Are Tokenized Treasuries?
Tokenized treasuries are blockchain-based representations of U.S. Treasury bills. A trusted issuer buys T-bills and issues digital tokens that represent fractional ownership. The underlying assets are held by a regulated custodian, and tokens settle instantly on-chain. The on-chain version is a 1:1 mirror of the real T-bill.
Why They Matter
- Instant settlement: No more T+2 delays.
- Fractional ownership: Get exposure to safe yields with small capital.
- 24/7 liquidity: Trade or redeem any time, even on weekends.
- Integrated yield: Smart contracts pay interest automatically.
How to Buy
- Choose a protocol: Platforms like Ondo, Matrixdock, and OpenEden offer tokenized treasuries. Due to securities laws, you may need to be non-U.S. or an accredited investor.
- Get whitelisted: Complete KYC/AML to whitelist your wallet.
- Fund your wallet: Add USDC or another stablecoin.
- Mint or buy: Mint directly from the dApp or purchase from a DEX like Uniswap.
Risks and Considerations
- Regulatory requirements (KYC/AML).
- Smart contract risk.
- Custodial risk if the issuer fails.
Final Thoughts
Tokenized U.S. treasuries blend the safety of government debt with the innovation of blockchain. They offer a forward-thinking way to park cash and earn yield with more flexibility than traditional brokers. Always conduct your own due diligence and consult a financial advisor before investing.
