Abu Dhabi’s First Tokenized Treasuries Fund

To facilitate digital, fractional ownership that might prove more liquid and accessible, these funds purchase US Treasury bonds, which are US government securities, and then develop a blockchain-based token to represent these assets.

Investments in tokenized treasury funds have increased dramatically, from just $105 million at the beginning of 2023 to over $2.4 billion globally. With an average of $275,000 per account, these tokenized monies are currently spread across around 8,800 addresses.

Abu Dhabi Fund Targets $100M in Assets

The Realize T-BILLS Fund is the result of a partnership between Neovision Wealth Management and Realize, both based in Abu Dhabi. Realize will run the supporting technologies, and Neovision will oversee the money.

Realize's co-founder, Dominik Schiener, told AGBI that he aimed to have $100 million in assets managed by the fund within a year. He anticipates that investors in the Gulf will account for 20 to 30 percent of this, with the remaining portion coming from Europe and Southeast Asia.

Schiener, Realize’s co-founder, said that Southeast Asia will have the most population. Because there are a lot of wealthy people and cryptocurrency users in the Middle East.

As a tokenized investment fund adhering to stringent regulatory standards, it positions the international financial center of Abu Dhabi as a global leader in real-world asset tokenization, said Arvind Ramamurthy, chief market development officer at Abu Dhabi Global Market.

The Realize T-BILLS Fund makes investments in exchange-traded funds (ETFs) that track three-month US Treasury bills and are managed by State Street Global Advisors and BlackRock. It is available to eligible investors outside of the US and has a $50,000 minimum investment.

Fund Offers Flexible Investment Options

The fund takes Bitcoin, Ethereum, and Iota tokens in addition to traditional cash through wire transfers. Swissquote, an online trading platform situated in Nyon, Switzerland, is then utilized to purchase ETFs using either fiat money or cryptocurrency.

Using government ETF holdings in new ways that no one has been able to do with the traditional financial ecosystem, or where it's very expensive to do is made possible by Realize's tokenized fund.

Realize Plans for Expansion into New Assets and Investor Markets

An online platform that allows institutional investors to lend to fund token holders who will use their tokens as collateral will shortly be launched by Realize. To generate a higher yield than what they're paying in interest on their collateralized borrowings would be the investor's goal, according to Schiener.

It becomes much more appealing for investors as new options are provided to generate yield beyond just the underlying yield of the treasury bills.

To tokenize various assets, currently, two more structures are being developed. It would also be fascinating to set up something for individual investors