- On June 19, Moody’s Ratings upgraded OpenEden’s TBILL to an A-bf rating due to the increasing number of T-bills being issued on chain.
Hill Lights International Limited, the business in charge of issuing OpenEden’s tokenized US Treasury bills, or TBILL Tokens, has been assigned an A-bf bond fund rating by international credit rating agency Moody’s Ratings.
The bond fund is thought to have a strong ability to accomplish its financial goals, as indicated by its high credit rating of A-bf. The traditional triple-A (AAA) rating would represent a superior ranking. Moody’s, Standard & Poor’s, and Fitch Ratings are the three major international credit rating agencies.
Government securities are the main asset type of the fund, including US Treasury bills. They are seen as a safe investment because the U.S. government is supporting them.
The process of turning an asset’s rights into a digital token on a blockchain is known as tokenization. It makes it possible to trade assets online, from bonds to properties and artwork.
Only institutional investors are permitted to access OpenEden’s TBILL. At the time of writing, its entire value was locked at approximately $36 million. It charges a transaction fee of 0.05% and offers a projected 4.99% yearly return. On the website of the company, it states that consumers can access U.S. Treasurys using smart contracts with no geographical or trading hour limitations.
Moody’s has previously assigned a rating to a number of tokenized bonds, including those that the European Investment Bank (EIB) has issued.
T-bills in the chain
With the tokenization of over $1.5 billion in US Treasurys, a major advancement in the fusion of blockchain technology with conventional banking has been achieved.
This movement is being driven by traditional Wall Street players like Franklin Templeton and BlackRock. The USD Institutional Digital Liquidity Fund (BUIDL), which BlackRock recently launched, expanded quickly to handle $462.7 million in assets, controlling a sizeable chunk of the market. With $357.6 million in assets, Franklin’s OnChain U.S. Government Money Fund (FOBXX) is tokenized on the Polygon and Stellar blockchains.
The first tokenized T-bills were made available to retail consumers by Woo X Exchange in April, enabling investors to profit from USD Coin USDC $1.00 holdings that were backed by U.S. T-bills.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
