Backed Issues First Tokenized Security Product on Base
Backed, a real-world asset (RWA) tokenizer, has introduced the first tokenized security product on Base called bIB01. This token tracks a short-term US treasury bond ETF.
Under the Swiss DLT act, Backed issues ERC-20 tokens known as bTokens. These tokens represent various assets such as treasury ETFs, corporate bond ETFs, and equities. Each token is backed by the underlying asset and can be freely transferred across different wallets.
Prior to this, Backed had issued b1B01 tokens on Ethereum and Gnosis chains, which have a combined market capitalization exceeding $37 million. The expansion of this product to Base is seen as an opportunity for experimentation with tokenized securities on the low-cost and developer-friendly Layer 2 blockchain.
“We are constantly seeing new use cases developed for our bTokens product and are certain that Base will provide an excellent platform for further experimentation,” said Giorgio Giuliani, head of product at Backed.
Understanding Backed’s bIB01 Tokens
The bIB01 tokens offered by Backed track the investment results of a short-term iShares treasury bond ETF. This index consists of US Dollar-denominated treasury bonds.
Investors and licensed resellers who have undergone know-your-customer and anti-money laundering checks can purchase these tokens from Backed. However, it should be noted that Backed’s tokenized assets are not registered with the SEC and are therefore not available to US residents.
Backed is one of the major players in the tokenized securities space, along with Ondo Finance, Maple Finance, Matrixdock, OpenEden, and TrueFi.
Hot Take: Backed Expands Tokenized Securities Offering on Base
Backed’s introduction of the bIB01 token on Base marks a significant milestone in the tokenization of real-world assets. By leveraging the Swiss DLT act and the capabilities of Base’s Layer 2 blockchain, Backed aims to provide a platform for experimentation with tokenized securities products.
This move highlights the growing interest and innovation in the field of blockchain-based financial instruments. With more players entering the market, the potential for increased liquidity and accessibility to traditional assets through tokenization is becoming more evident.
While regulatory considerations remain crucial, initiatives like Backed’s bIB01 token demonstrate the progress being made in bridging the gap between traditional finance and blockchain technology. As this space continues to evolve, it will be interesting to see how tokenized securities reshape the financial landscape.
By
By
By
By
By
By