NextBridge, an El Salvador-based platform, has successfully closed a $30 million token sale backed by United States Treasury bills (T-bills).
The offering, finalized in November, marks a significant milestone in the growing trend of tokenizing traditional financial assets. Investors subscribed to the USTBL tokens through Bitfinex Securities, the sister company of stablecoin Tether. Each token represents a proportional share of $200 million in U.S. Treasury securities targeted for issuance.
The USTBL token operates on the Bitcoin blockchain, utilizing the Liquid Network, a layer-2 protocol. According to Michele Crivelli, the founder of NextBridge, the token is tradable on secondary markets, though redemptions will only be available starting March 2025.
Crivelli emphasized upon plans to facilitate redemptions through exchange mechanisms and dynamic order book subscriptions, providing flexibility for token holders.
Regulated under El Salvador’s securities laws, the USTBL token is overseen by the National Commission for Digital Assets.
NextBridge’s offering contributes to the developing market of tokenized T-bills. The competitors like OpenEden, BlackRock, and Franklin Templeton launched similar products this year.
Since its debut in March, BlackRock’s USD Institutional Digital Liquidity Fund has handled assets worth over $447 million.
Tokenized Treasurys represent US Treasury securities on blockchain, providing increased liquidity and faster settlement times than traditional methods. These digital assets provide global investors with easy access to government-backed securities, showcasing the benefits of blockchain technology in traditional finance.
Despite the growing interest, the on-chain value of tokenized government securities currently stands at $2.3 billion, falling short of the anticipated $3 billion mark for 2024, as reported by Dune Analytics.
Beyond government securities, tokenization is expanding to illiquid assets such as real estate and agricultural goods, unlocking new investment opportunities.
Analysts from the Global Financial Markets Association (GFMA) and Boston Consulting Group predict that the value of tokenized illiquid assets could reach $16 trillion by 2030, underscoring blockchain’s transformative potential across diverse financial sectors.
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