Tokenized Treasuries’ Surging Demand Prompts Yield-Bearing Offering by Enigma Securities

U.S. Treasuries are a gateway for tokenization efforts, and has grown to a $850 million market from $100 million over the past year, rwa.xyz data shows.

AccessTimeIconJan 10, 2024 at 5:36 p.m. UTC
Updated Mar 8, 2024 at 7:39 p.m. UTC

Enigma Securities, the digital asset brokerage arm of U.K.-based Makor Securities, has integrated on-chain yield provider OpenTrade and started offering the product to investors in Europe, Asia and Latin America as demand for Tokenized U.S. treasuries continues to grow.

The companies said in a Wednesday press release that institutional clients at Enigma can park their cash and earn a yield via OpenTrade's U.S. Treasury bill liquidity pool on the Ethereum network without any additional onboarding.

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  • "As interest rates have steadily risen, we have seen a huge amount of demand from our institutional clients for a product that would allow them to take advantage of these high risk-adjusted returns," Philippe Kieffer, head of business development at Enigma, said in a statement.

    "Altogether, we anticipate driving hundreds of millions of dollars worth of volumes through our new solution based on this huge amount of client demand," he added.

    The offering comes as tokenization of real-world assets (RWA) – placing traditional financial instruments such as government on blockchain rails – became one of the hottest trends in crypto, with big banks exploring possibilities to use blockchain technology.

    U.S. Treasuries are a gateway for tokenization efforts, mushrooming to an $850 million market from $100 million over the past year, with asset management giant Franklin Templeton being the largest player, rwa.xyz data shows.

    OpenTrade debuted its tokenized Treasuries liquidity pool in September, developed using Circle’s on-chain credit facilitation service Perimeter Protocol and powered by USDC, the second-largest stablecoin.

    Edited by Aoyon Ashraf.

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    Krisztian  Sandor

    Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.