Abu Dhabi-based companies Realize and Neovision Wealth Management have launched the Realize T-BILLS Fund, an investment vehicle aimed at combining traditional finance and blockchain technology by tokenizing U.S. Treasury-focused ETFs. This fund plans to acquire units of ETFs from BlackRock’s iShares and State Street’s SPDR, then convert these into digital tokens for blockchain-based holding, trading, and transferring. Dominik Schiener, co-founder of Realize, revealed in an interview that the fund aims to reach a $200 million valuation.
Under this partnership, Realize will handle the tokenization of ETF units, while Neovision will manage the fund itself. Dr. Ryan Lemand, co-founder and CEO of Neovision, highlighted that investing in Treasury ETFs, rather than direct T-bill purchases, reduces transaction costs, which would otherwise accumulate from repeated purchases of Treasury securities.
The Growth of Tokenized Treasuries
Tokenized Treasuries represent a rising trend in the crypto-finance sector, with a current market capitalization of $2.4 billion across public blockchains, especially on Ethereum. These digital tokens are backed by U.S. government debt and have been issued by both traditional financial institutions, such as BlackRock and Franklin Templeton, and blockchain-native companies. For instance, BlackRock’s BUIDL fund, launched in March and fully invested in cash, U.S. Treasury bills, and repos, currently boasts a market cap of $530 million on the Ethereum blockchain.
The Realize T-BILLS Fund, the first tokenized fund domiciled in the Abu Dhabi Global Market (ADGM), will offer the $RBILL token as a digital representation of its fund units. Initially, the tokens will be available on the IOTA and Ethereum blockchains, providing investors with blockchain-based liquidity and transferability.
Key Quotes
- “The goal is to bring fungible assets onchain. T-Bills are the most liquid asset today in the real world,” said Dominik Schiener of Realize. “They’re also the best form of collateral, paying around 5%.”
- Dr. Ryan Lemand of Neovision emphasized that tokenizing ETF units, rather than holding cash Treasuries directly, avoids the recurring transaction fees associated with continuous T-bill purchases.
By merging the stability of U.S. Treasuries with blockchain technology, the Realize T-BILLS Fund highlights how digital assets can streamline access to traditional financial products, potentially reshaping investment in government securities on a global scale.
