Moody’s Ratings, a global credit rating agency, has given an “A-bf” rating to Hill Lights International Limited, which is responsible for issuing OpenEden’s tokenized United States Treasury bills, known as TBILL Tokens.
The “A-bf” rating is a high credit rating, indicating that the bond fund is considered to have a strong ability to achieve its financial objectives. A superior rating would be the classic triple-A (AAA) rating. Moody’s is among the top three global credit rating agencies, along with Standard & Poor’s and Fitch Ratings.
The fund mainly invests in U.S. Treasury bills or government securities, which are regarded as a secure investment since they are backed by the U.S. government.
Tokenization is the process of converting rights to an asset into a digital token on a blockchain, enabling assets such as bonds, real estate, and artworks to be traded online.
OpenEden’s TBILL is exclusively available for institutional investors. It currently holds over $36 million in total value and offers an estimated annual return of 4.99%, with a transaction fee of 0.05%. The fund, according to the company’s website, enables users to access U.S. Treasurys through smart contracts without restrictions on trading hours or location.
Moody’s has previously rated several tokenized bonds, including those issued by the European Investment Bank (EIB).
The tokenization of over $1.5 billion in U.S. Treasurys represents a significant milestone in the integration of traditional finance with blockchain technology. Major players such as BlackRock and Franklin Templeton are leading this trend. BlackRock recently launched the USD Institutional Digital Liquidity Fund (BUIDL), which has grown rapidly to manage a significant portion of the market with $462.7 million in assets. Franklin’s OnChain U.S. Government Money Fund (FOBXX) holds $357.6 million and is tokenized on both the Stellar and Polygon blockchains.
In April, Woo X Exchange introduced what is claimed to be the world’s first tokenized T-bills for retail customers, allowing investors to earn yield on USD Coin (USDC) holdings backed by U.S. T-bills.
Source:
Eugene Ng
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