Tradeteq Launches U.S. Treasury Bond Token on the XDC Network

  • Treasury
  • 29.08.2023 05:05 pm

Tradeteq, the marketplace for private credit and real assets and provider of securitization-as-a-service, today announced the ability for accredited investors to get access to a multibillion-dollar exchange-traded U.S. Treasury Yield fund (USTY). USTY will be tokenized by digital asset leader Securitize on the XDC Network.

The new USTY token is significant because it expands low-cost access to the yield generated by an institutionally-managed U.S. Treasury ETF in a digitally-native format. Investors in the tokens will have exposure to U.S. Treasury securities with remaining maturities between zero and one year, allowing corporate treasurers, in particular, to optimize cash management strategies. The new token is open to accredited investors beginning today directly through Yieldteq.

Tradeteq has selected the XDC Network as its blockchain platform of choice to securely and efficiently distribute and record the ownership of fully-regulated, digitized financial products, and this is the first time XDC Network will be used by Securitize to tokenize digital asset securities.

USTY is one in a suite of tokenized securities set to be issued on the XDC Network – with Tradeteq serving as an engine providing end-to-end securitization services that allow trade originators to build liquidity pools through their own regulated, XDC Network-based tokens.

“Bringing USTY to the XDC Network establishes an unparalleled investment solution for both seasoned investors seeking portfolio diversification and newcomers looking for a stable investment opportunity,” said Nils Behling, Chief Operating Officer of Tradeteq. “USTY combines the flexibility and accessibility of cryptocurrencies with the stability of a U.S. Treasury ETF, creating an efficient and seamless investment experience. Our collaboration with XDC Foundation and Securitize and the use of the XDC Network aim to redefine traditional investment paradigms, offering investors a unique, low-risk, and cost-efficient opportunity to diversify their portfolios.”

XDC Network’s blockchain technology provides USTY with a secure and robust security framework and a solid platform on which financial instruments can be distributed in a scalable and accessible way. With its integration into Securitize’s digital asset securities platform, the XDC Network supports a comprehensive ecosystem for real world asset issuance and trading.

"Tradeteq’s launch of the USTY security token, and the integration of the XDC Network into Securitize’s digital securities protocol, together mark a significant milestone towards the issuance of real world assets on the XDC Network,” said Billy Sebell, Executive Director of XDC Foundation. “These efforts have now brought the promise of a secure, scalable trade finance solution on the XDC Network into reality and signify a major step forward in our vision of XDC being the trade network of choice in the blockchain space.”

USTY is a security tokenized in collaboration with Securitize, the leader in expanding investor and business access to digitized alternative investments, including products such as this, private equity, private credit, secondaries, venture capital, and equity in start-ups. Tokenization will occur through Securitize’s stock transfer agent service, through which it onboards investors, verifies their identities, issues shares, tracks share ownership, and manages actions such as shareholder communications and dividend payouts.

“Securitize is proud to have been selected by Tradeteq to issue and manage shares in its new U.S. Treasury Yield tokens, which is yet another step forward in the digitization and improvement of traditional financial products,” said Securitize co-founder and President Jamie Finn. “Securitize is also proud to announce our support for the XDC Network blockchain, which joins Avalanche and Polygon as a blockchain of choice for the digitization of new and traditional financial products.”

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