Institutional DeFi Player OpenTrade Launches Tokenized Treasury Bill Product
Institutional DeFi player OpenTrade is introducing a tokenized treasury bill product for accredited investors. OpenTrade will utilize Perimeter Protocol, an open-source platform developed by Circle, to expand USDC into the realm of real-world assets (RWA).
Enhancing Traditional Finance with USDC
According to Jeff Handler, co-founder and chief commercial officer of OpenTrade, USDC can bring significant efficiencies to the traditional finance sector. The founding team recognized the potential value of USDC while working at Circle and developed OpenTrade to tap into this opportunity. Handler believes that USDC can provide added value for structured finance.
Adding Utility to the Digital Asset Space
OpenTrade’s goal is to offer an additional layer of utility for the growing interest in the digital asset space. Handler highlights the increasing interest in yield products that are user-friendly and hassle-free.
Transparency and On-Chain Identifier
The newly launched product offers a 1:1 backed tokenization solution. For each tokenized treasury bill purchased by an investor, OpenTrade will buy an actual treasury bill and provide an on-chain identifier for the underlying asset. This approach enhances transparency within the industry.
Secured Lending and Global Availability
The product also enables secured lending of USDC against treasury bills, allowing lenders to earn returns while operating entirely on-chain with their existing wallets and custodians. OpenTrade operates as a secured lending product rather than a securities instrument, allowing it to be unregulated globally. However, this means it won’t be available in the U.S. for now.
Collaboration with Financial Institutions
OpenTrade works with a network of financial institutions to power off-chain assets. Handler is pleased with the appetite of these institutions to work with OpenTrade as clients, despite the banking turmoil surrounding the crypto industry.
A Digital Treasury Bill Savings Account
Handler sees OpenTrade’s product as a nearly risk-free digital U.S. treasury bill savings account for individuals outside the country. The new product is available to individual accredited investors, companies, funds, DAOs, regulated institutions, and third-party distribution partners.
Hot Take: OpenTrade Paves the Way for Future Finance Innovation
OpenTrade’s tokenized treasury bill product represents a pioneering step towards bridging the gap between traditional finance and the digital asset space. By leveraging USDC and Perimeter Protocol, OpenTrade aims to introduce efficiencies and transparency to the industry. While it may take time for this innovative product to penetrate the legacy financial system, OpenTrade is at the forefront of a revolution that could reshape traditional finance in the future.
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