XDC Network (XDC) token jumps as US Treasury Yield (USTY) tokens debuts

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Written on Aug 29, 2023

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The XDC Network token has jumped 18% today to trade at $0.06083 at press time.
The price hike came after a tokenized US Treasury offering on XDC Network blockchain.
The tokenization of real world assets (RWAs) has become a booming industry as more blockchains join the race.

The XDC Network (XDC) token price is skyrocketing after a slight dip between August 24 and August 28.

Today’s XDC price surge is attributed to the launch of a tokenized US Treasury offering on XDC Network today.

US Treasury Yield (USTY) tokens on XDC Network

Tradeteq, a private debt and real-world asset marketplace based in the UK, announced on Tuesday that it had launched a tokenized US Treasury offering on the layer 1 blockchain XDC Network.

The US Treasury Yield (USTY) tokens, which are available to professional investors on Tradeteq’s Yieldteq platform, are blockchain-based representations of shares in a US Treasury bond exchange-traded fund (ETF). Securitize, a supplier of tokenization services, onboard purchases, keeps track of share ownership and administers dividend payments.

The launch of the new product coincides with tokenization emerging as one of the most popular developments in the battered digital asset sector. According to a Bank of America report, the tokenization of real-world assets (RWAs), which involves creating blockchain-based tokens of conventional financial assets like government bonds or private equity, could change the financial system. Bernstein predicted that the market for RWAs could reach $5 trillion in the following five years.

Demand for tokenized RWAs

The demand for tokenized Treasury bonds increased by almost six times this year to $622 million. While yields in cryptocurrency lending have fallen due to the significant deleveraging during the bear market, crypto companies and investment funds seek these products in order to benefit from rising government bond rates.

XDC has entered the fray of blockchains competing to offer tokenized assets. The most common blockchains in the world of RWAs are Stellar and Ethereum although Polygon and Avalanche have also been used for RWAs before. The Polygon (MATIC) network was used by JPMorgan to carry out deals utilizing tokenized versions of the Singapore dollar and the Japanese yen. Securitize, on the other hand, released equity tokens of a real estate investment trust on the Avalanche (AVAX) blockchain.