Tech
This Cryptocurrency Startup Makes US Treasuries Accessible on Bitcoin
Hamilton, a cryptocurrency startup, has launched tokenized U.S. Treasury bonds on Bitcoin Layer 2 BlockchainAccording to the company, this innovative move represents an absolute first in the cryptocurrency world.
Tokenized securities labeled Hamilton US T-Bills (HUST) are now available on Core, Stacks, and Build on Bitcoin (BoB) layer-2 Bitcoin solutions. The first HUST transaction took place on July 4, marking a new era in decentralized finance.
A Bridge Between Traditional Finance and DeFi
Hamilton’s initiative combines the stability of the Bitcoin Network with the reliability of the US dollar, offering a unique advantage in the DeFi landscape.
3/8 With the Real-World Asset (RWA) market projected to reach $16 trillion by 2030, tokenizing these assets on Bitcoin will provide unprecedented security, transparency, and liquidity 🔐💰
— Hamilton (@Hamilton_RWA) July 4, 2024
Hamilton CEO Kasstawi believes this move marks a historic step towards financial independence, exposing investors to emerging markets such as cryptocurrencies.
“Hamilton is building the first RWA on Bitcoin. We are bringing financial independence to Independence Day,” She said CEO of Hamilton.
The company also says it wants to bring stability, transparency and liquidity to emerging market financial systems.
Hamilton US T-Bills (HUST) will run on three Bitcoin Layer 2 platforms: Stacks, Core, and BoB. Brendon, a contributor to the Core project, expresses his excitement about this development in a X send.
The company’s idea reflects a growing trend of tokenized real-world assets (RWA) participating in the Web3 economy. This innovation converts assets such as real estate, stocks and T-Bills into digital tokens that can be traded, transferred and used within decentralized platforms.
Furthermore, this trend is significant because it brings traditional assets into the digital space, making them more flexible. For example, investors can now trade or leverage Treasury Bonds on Blockchain Platforms.
Additionally, the US Federal Reserve’s interest rates have made T-Bills competitive with stablecoin yields. T-Bills now offer similar yields but carry less risk than stablecoins.
According to Defillama, the total value locked in RWA is currently $3.81 billion, with a total market value of over 29 billion dollars. Hamilton expected The RWA market could reach $16 trillion by 2030.
Bitcoin’s Evolving Ecosystem
Since 2023, the Bitcoin network has introduced three token standards: Bitcoin itself, ordinals and runes.
Launched early last year, Ordinals create non-fungible tokens (NFTs) on satoshi. In April 2024, Rune was launched to allow people to create new digital coins on the Bitcoin network.
Increased traffic on the Bitcoin network has prompted the development of layer 2. Solutions like the Lightning Network aim to process BTC transfers faster than the main chain.
Layer-2s also enable smart contract-dependent DeFi (BTCfi) on the Bitcoin network, expanding Bitcoin’s utility. beyond simple transfers.
Core DAO, one of HUST’s host platforms, runs both a layer-1 blockchain and a layer-2 BTC solution. It has gained support from major cryptocurrency exchanges such as Bitget and MEXC.
Hamilton’s launch of tokenized US Treasury bonds on Bitcoin layer-2 is a significant milestone. It demonstrates the potential of traditional financial instruments in the crypto space. As the DeFi ecosystem evolves, we may see more innovations like this.
Disclaimer: The views expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile and high-risk asset class.
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