Crypto Startup Launches Tokenized US Treasury Bonds on Bitcoin Layer-2s

Crypto Startup Launches Tokenized US Treasury Bonds on Bitcoin Layer-2s

July 4, 2024

Bitcoin

4 min

In a groundbreaking move that could reshape the financial landscape, crypto startup Hamilton has introduced tokenized United States Treasury bonds on Bitcoin layer-2 blockchains. Dubbed Hamilton U.S. T-Bills (HUST), these digital assets will be accessible on the Stacks, Core, and BoB (Build on Bitcoin) platforms. The first transaction was executed on July 4, marking a historic step in decentralized finance. By leveraging the stability of the Bitcoin network and the reliability of U.S. Treasury bonds, Hamilton aims to offer a secure and transparent financial product with yields surpassing those of stablecoins. This innovation could pave the way for broader adoption of tokenized real-world assets in the Web3 economy.

The Stability of the BTC Network and a Yield Better Than Stablecoin

Hamilton's initiative to tokenize U.S. Treasury bonds on Bitcoin layer-2 solutions is a pioneering effort that combines the best of both worlds: the stability and security of the Bitcoin network and the reliability of U.S. Treasury bonds. Bitcoin layer-2s are designed to enhance the network’s scalability and functionality, making it a robust platform for decentralized finance (DeFi) applications. Hamilton co-founder and CEO, Kasstawi, emphasized the significance of this development:

“Combining US Treasury bills with Bitcoin’s security and transparency marks a historic step towards financial independence, providing crucial exposure to emerging markets.”

Although the Hamilton executive was only identified as Kasstawi, there is speculation that he might be Mohamed Elkasstawi, a known investor in the blockchain space.

Tokenized Real-World Assets: A New Frontier in Web3 Economy

Tokenized real-world assets (RWAs) such as T-Bills, real estate, securities, and similar financial instruments are increasingly becoming integral to the Web3 economy. These assets can be swapped, transferred, and leveraged, making them highly versatile. As of now, RWAs have reached $8 billion in total value locked. The U.S. Federal Reserve’s interest rate policy has made T-Bills competitive with stablecoin yields, but with much lower risk.

Since 2023, the Bitcoin network has introduced three token standards. In addition to Bitcoin (BTC), Ordinals were introduced at the beginning of that year to enable the issuance of non-fungible tokens (NFTs) inscribed on satoshis. In April 2024, Runes was introduced to enable the issuance of altcoins directly on the Bitcoin blockchain.

The Rise of Bitcoin Layer-2 Solutions

The increased traffic on the Bitcoin network has led to slower processing times and higher fees, driving the development of Bitcoin layer-2 solutions. The Bitcoin layer-2 Lightning Network was developed to process BTC transfers faster than on layer-1. Layer-2 solutions also enable smart-contract dependent decentralized finance, often referred to as BTCfi, on the Bitcoin network.

HUST host Core DAO operates a layer-1 blockchain in addition to its BTC layer-2 solution. It has received support from cryptocurrency exchanges such as Bitget and MEXC.

The Potential of Tokenized U.S. Treasury Bonds

The introduction of Hamilton U.S. T-Bills (HUST) on Bitcoin layer-2 blockchains represents a significant advancement in the tokenization of real-world assets. By leveraging the security and transparency of the Bitcoin network, Hamilton aims to offer a financial product that not only provides better yields than stablecoins but also ensures a higher level of security and transparency.

The Future of Decentralized Finance

The launch of HUST is a testament to the growing potential of decentralized finance (DeFi) and the role of Bitcoin layer-2 solutions in this evolving landscape. As more real-world assets become tokenized, the Web3 economy is poised to offer a broader range of financial products and services that are more secure, transparent, and accessible.

Conclusion

Hamilton's initiative to tokenize U.S. Treasury bonds on Bitcoin layer-2 blockchains is a pioneering effort that combines the stability and security of the Bitcoin network with the reliability of U.S. Treasury bonds. This innovation could pave the way for broader adoption of tokenized real-world assets in the Web3 economy, offering a secure and transparent financial product with yields surpassing those of stablecoins. As the Web3 economy continues to evolve, the potential for decentralized finance and tokenized real-world assets is limitless.

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In a groundbreaking move that could reshape the financial landscape, crypto startup Hamilton has introduced tokenized United States Treasury bonds on Bitcoin layer-2 blockchains. Dubbed Hamilton U.S. T-Bills (HUST), these digital assets will be accessible on the Stacks, Core, and BoB (Build on Bitcoin) platforms. The first transaction was executed on July 4, marking a historic step in decentralized finance. By leveraging the stability of the Bitcoin network and the reliability of U.S. Treasury bonds, Hamilton aims to offer a secure and transparent financial product with yields surpassing those of stablecoins. This innovation could pave the way for broader adoption of tokenized real-world assets in the Web3 economy.

The Stability of the BTC Network and a Yield Better Than Stablecoin

Hamilton's initiative to tokenize U.S. Treasury bonds on Bitcoin layer-2 solutions is a pioneering effort that combines the best of both worlds: the stability and security of the Bitcoin network and the reliability of U.S. Treasury bonds. Bitcoin layer-2s are designed to enhance the network’s scalability and functionality, making it a robust platform for decentralized finance (DeFi) applications. Hamilton co-founder and CEO, Kasstawi, emphasized the significance of this development:

“Combining US Treasury bills with Bitcoin’s security and transparency marks a historic step towards financial independence, providing crucial exposure to emerging markets.”

Although the Hamilton executive was only identified as Kasstawi, there is speculation that he might be Mohamed Elkasstawi, a known investor in the blockchain space.

Tokenized Real-World Assets: A New Frontier in Web3 Economy

Tokenized real-world assets (RWAs) such as T-Bills, real estate, securities, and similar financial instruments are increasingly becoming integral to the Web3 economy. These assets can be swapped, transferred, and leveraged, making them highly versatile. As of now, RWAs have reached $8 billion in total value locked. The U.S. Federal Reserve’s interest rate policy has made T-Bills competitive with stablecoin yields, but with much lower risk.

Since 2023, the Bitcoin network has introduced three token standards. In addition to Bitcoin (BTC), Ordinals were introduced at the beginning of that year to enable the issuance of non-fungible tokens (NFTs) inscribed on satoshis. In April 2024, Runes was introduced to enable the issuance of altcoins directly on the Bitcoin blockchain.

The Rise of Bitcoin Layer-2 Solutions

The increased traffic on the Bitcoin network has led to slower processing times and higher fees, driving the development of Bitcoin layer-2 solutions. The Bitcoin layer-2 Lightning Network was developed to process BTC transfers faster than on layer-1. Layer-2 solutions also enable smart-contract dependent decentralized finance, often referred to as BTCfi, on the Bitcoin network.

HUST host Core DAO operates a layer-1 blockchain in addition to its BTC layer-2 solution. It has received support from cryptocurrency exchanges such as Bitget and MEXC.

The Potential of Tokenized U.S. Treasury Bonds

The introduction of Hamilton U.S. T-Bills (HUST) on Bitcoin layer-2 blockchains represents a significant advancement in the tokenization of real-world assets. By leveraging the security and transparency of the Bitcoin network, Hamilton aims to offer a financial product that not only provides better yields than stablecoins but also ensures a higher level of security and transparency.

The Future of Decentralized Finance

The launch of HUST is a testament to the growing potential of decentralized finance (DeFi) and the role of Bitcoin layer-2 solutions in this evolving landscape. As more real-world assets become tokenized, the Web3 economy is poised to offer a broader range of financial products and services that are more secure, transparent, and accessible.

Conclusion

Hamilton's initiative to tokenize U.S. Treasury bonds on Bitcoin layer-2 blockchains is a pioneering effort that combines the stability and security of the Bitcoin network with the reliability of U.S. Treasury bonds. This innovation could pave the way for broader adoption of tokenized real-world assets in the Web3 economy, offering a secure and transparent financial product with yields surpassing those of stablecoins. As the Web3 economy continues to evolve, the potential for decentralized finance and tokenized real-world assets is limitless.

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