Crypto startup Hamilton has pioneered the tokenization of United States Treasury bonds on layer-2 blockchains of Bitcoin. This groundbreaking initiative marks a significant milestone, touted as the first of its kind.
Dubbed as Hamilton U.S. T-Bills (HUST), these tokens will be accessible across various Bitcoin layer-2 solutions including Stacks, Core, and BoB (Build on Bitcoin). The inaugural transaction involving HUST took place on July 4, as per a company statement.
Hamilton emphasizes that leveraging Bitcoin layer-2 decentralized finance ecosystems combines the robustness of the Bitcoin network with the stability of the U.S. dollar. This integration aims to enhance network scalability and functionality. Kasstawi, co-founder and CEO of Hamilton, underscored the strategic implications of this move.
Mohamed Elkasstawi, a notable investor in the blockchain sector, is associated with Hamilton.
\[img\] Source: Hamilton
The advent of tokenized real-world assets (RWAs) such as T-Bills into the Web3 economy enables their seamless exchange, transfer, and utilization as collateral. The total value locked in these assets has surged to $8 billion. This surge is driven partly by the competitive yields of T-Bills vis-a-vis stablecoins, reflecting the U.S. Federal Reserve’s interest rate policy.
Since 2023, the Bitcoin network has introduced three token standards, including Ordinals early that year for non-fungible tokens etched on satoshis. The recent introduction of Runes in April 2024 facilitates direct issuance of altcoins on the Bitcoin blockchain.
The burgeoning traffic on the Bitcoin network, which has led to slower processing times and increased fees, has catalyzed the development of Bitcoin layer-2 solutions. The Lightning Network, a prominent layer-2 solution, expedites BTC transfers compared to layer-1.
Furthermore, layer-2 solutions enable decentralized finance reliant on smart contracts, termed BTCfi, within the Bitcoin ecosystem.
In addition to its BTC layer-2 solution, HUST’s host Core DAO operates a layer-1 blockchain. It has garnered support from cryptocurrency exchanges like Bitget and MEXC.
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