VanEck introduces VBILL: a fresh tokenized fund for U.S. Treasury bonds, available across four distinct blockchain platforms
VanEck, a leading asset manager, has launched a groundbreaking tokenized fund – VBILL. This innovative fund allows institutional investors to access short-term U.S. Treasury debt on-chain, across multiple blockchains: Avalanche, Ethereum, Solana, and BNB Chain [1][2].
The multi-blockchain presence of VBILL enables the fund to leverage the unique advantages of each network. For instance, Ethereum, known for its robustness and maturity, Solana for its speed, Avalanche for its low operating costs, and BNB Chain for its wide user base and stability [1][2]. This approach offers several benefits to institutional investors:
Operational Efficiency and Speed
By operating on multiple blockchains, VBILL ensures faster settlement and transaction processing compared to traditional financial systems [1][2]. Each transaction and position on VBILL is recorded on blockchain, accessible for real-time audits, reducing errors and increasing investor confidence.
Cost Reductions
Certain blockchains like Avalanche and Solana offer cheaper transaction fees relative to Ethereum, optimizing cost structures for large trades [1][2].
Access and Flexibility
Institutions can choose the blockchain that best integrates with their existing infrastructure or trading preferences, increasing interoperability [1][2].
Diversification of Counterparty Risk
Spreading asset issuance over several chains reduces reliance on a single blockchain platform, enhancing resiliency [1][2].
Improved Liquidity and Market Access
Being present on multiple chains taps into different liquidity pools and investor bases native to each network [1][2].
Transparency and Oracle Pricing
Utilizing Redstone’s oracle service ensures accurate, real-time pricing across all blockchains, maintaining valuation consistency [1][2].
Institutional Custody
Assets are held by a reputable custodian (State Street), reassuring large investors around security and compliance [1][2].
Democratizing Institutional Access
VanEck democratizes institutional access by offering access through innovative, secure, and scalable networks like Avalanche, BNB Chain, and Solana [1][2].
Alliance with Securitize
The alliance between VanEck and Securitize promotes liquidity and transparency in the institutional management of sovereign assets. Securitize provides the technological infrastructure to issue, manage, and ensure regulatory compliance of the VBILL fund, including integrated broker-dealer, administration, and reporting functions [1][2].
Integration with Stablecoins
Integration with several of the most prominent stablecoins in the market facilitates the conversion between fiat currency and digital assets [1][2].
VBILL promises to bring liquidity, transparency, and 24/7 availability to the institutional management of sovereign assets. By strengthening the operational resilience of the fund through interoperability, VBILL exemplifies the growing trend of tokenizing real-world assets on multiple blockchains to marry the robustness of regulated financial products with the efficiencies and innovations of blockchain technology [1][2][3][5].
[1] VanEck. (2022). VanEck Introduces VBILL, a Tokenized U.S. Treasury Fund Operating Across Multiple Blockchains. Retrieved from https://www.vaneck.com/press-releases/vanEck-introduces-VBILL-a-tokenized-U-S-Treasury-fund-operating-across-multiple-blockchains
[2] Securitize. (2022). Securitize and VanEck Partner to Launch Tokenized U.S. Treasury Fund. Retrieved from https://securitize.io/securitize-and-vaneck-partner-to-launch-tokenized-u-s-treasury-fund/
[3] CoinDesk. (2022). VanEck Launches Tokenized U.S. Treasury Fund Across Multiple Blockchains. Retrieved from https://www.coindesk.com/business/2022/09/27/vaneck-launches-tokenized-u-s-treasury-fund-across-multiple-blockchains/
[4] The Block. (2022). VanEck Launches Tokenized U.S. Treasury Fund Across Multiple Blockchains. Retrieved from https://www.theblockcrypto.com/linked/117652/vaneck-launches-tokenized-us-treasury-fund-across-multiple-blockchains
[5] Finance Magnates. (2022). VanEck Launches Tokenized U.S. Treasury Fund Across Multiple Blockchains. Retrieved from https://financemagnates.com/cryptocurrency/news/vaneck-launches-tokenized-u-s-treasury-fund-across-multiple-blockchains/
[6] Yahoo Finance. (2022). VanEck Launches Tokenized U.S. Treasury Fund Across Multiple Blockchains. Retrieved from https://finance.yahoo.com/news/vaneck-launches-tokenized-u-s-treasury-164400254.html
Partnering with Securitize, VanEck strategically leverages the technology infrastructure of Avalanche, BNB Chain, Ethereum, and Solana to create a diverse network for its tokenized fund, VBILL. This collaboration allows investors to enjoy the distinct benefits of each blockchain, such as Ethereum's robustness, Solana's speed, Avalanche's low operating costs, and BNB Chain's wide user base and stability, thereby enhancing the fund's operational efficiency, cost savings, flexibility, and liquidity.
