Finblox, a Hong Kong-based crypto superapp backed by Dragonfly and Saison Capital, has on Tuesday announced the launch of tokenized rights to US Treasury Bills (T-Bills) in partnership with OpenEden, a firm that operates the first smart contract vault to offer 24/7 access to U.S. Treasury Bills.
Finblox said in a statement that this move unlocks a trillion-dollar market for web3 users, offering unprecedented access to an AAA-rated financial asset.
By partnering with OpenEden, Finblox said it is bringing the traditional financial world into the realm of decentralized finance (DeFi).
This allows users to seamlessly invest in tokenized T-Bill rights directly through the Finblox platform, removing barriers and opening up new avenues for 300 million crypto users.
It is noted that T-Bills have long been recognized as the most blue chip financial asset, offering safe returns and serving as a benchmark for global financial markets.
According to the statement, the events of 2022 involving the collapse of various platforms including FTX and Celsius have underscored the importance of transparency in the crypto industry and the need to regain trust.
Thanks to OpenEden’s and Finblox’s commitment to on-chain and off-chain transparency, users will have real-time access to view the assets deployed into TBILL tokens to ensure radical transparency.
“We are excited to launch tokenized US T-Bills and empower web3 users with access to a trillion-dollar market,” said Peter Hoang, Chief Executive Officer of Finblox.
This integration represents a significant step forward in democratizing finance and creating new opportunities for users to diversify their portfolios in a more transparent and efficient manner, he added.
According to the statement, the tokenization of US T-Bills offers numerous advantages for investors.
It enables fractional ownership, providing the flexibility to invest in T-Bills with smaller amounts.
Additionally, the OpenEden TBILL Vault’s integration with Chainlink will provide on-chain proof that TBILL tokens are backed 1:1 by U.S. Treasury securities, USDC, and US dollars.
“OpenEden is pleased to support Finblox with our technology infrastructure and our expertise in tokenizing real-world assets within a regulatory-compliant framework,” said Eugene Ng, Co-Founder of OpenEden.
Through the OpenEden TBILL Vault, he said the firm’s partners can offer low-risk cash management products that generate sustainable yields from U.S. Treasuries to their users.
According to the statement, the crypto industry faces a notable concern surrounding the understanding of risks associated with yield-generating strategies and the stability of underlying stablecoins, a major hurdle to adoption.
A significant event in March 2023 heightened these concerns as USDC, a major stablecoin, depegged by nearly 10 percent, triggering widespread panic.
However, the T-Bill product offered by Finblox and OpenEden brings a different level of risk.
Since US T-Bills are pegged to USD instead of USDC, the risk factor relies on the utilization rate of the vault, typically ranging from 95 percent to 97 percent.
The remaining 3 percent to 5 percent serves as working capital, representing the underlying risk that users should take into account.
This portion is susceptible to potential smart contract exploits or the depegging of USD Coin.
Thus, the launch of tokenized US T-Bills on-chain marks a significant step forward for Finblox in its mission to provide a comprehensive suite of financial services within the crypto ecosystem.
As a crypto superapp, Finblox said it continues to drive innovation and create opportunities for its users.
“We believe that Finblox’s partnership with OpenEden to launch tokenized US T-Bills will create a new paradigm in the crypto space,” said Qin En of Saison Capital, investor in both companies.
According to him, this collaboration unlocks unprecedented access to a trillion-dollar market, offering users transparency and trust.
“Beyond portfolio diversification, it offers the potential for more reliable and safer yields backed by the blue chip financial asset,” he added.
Finblox is a crypto superapp that empowers users to earn rewards from their crypto assets.
With a suite of products including trading, staking, and artificial intelligence (AI), Finblox is committed to delivering a seamless and inclusive financial experience within the rapidly evolving crypto ecosystem.
The firm was founded by experienced startup builders Peter Hoang and Dmitriy Paunin.
Peter previously Co-founded Gotrade, a zero-commission stock trading app backed by Y Combinator – while Dmitriy Paunin was the Chief Technology Officer at Coins.ph, Southeast Asia’s largest cryptocurrency exchange based in the Philippines which amassed over 16 million users.
OpenEden is a firm that building the bridge to a new financial system.
Its mission is to bring real-world assets on-chain to unlock trillions of dollars in value.
The firm believes that internet-native money and decentralization will open up access to real-world assets for everyone on a global scale, creating a more inclusive, permissionless, and free-flowing economy.