Global credit rating agency Moody’s Ratings has assigned an “A-bf” bond fund rating to Hill Lights International Limited, the operator of OpenEden’s tokenized U.S. Treasury note issuance, known as the TBILL token.
The ‘A-bf’ rating is a high credit rating and suggests that the bond fund has a strong ability to achieve its financial goals. The superior rating is the classic Triple A (AAA) rating. Moody’s is considered one of the top three global credit rating agencies along with Standard & Poor’s (S&P) and Fitch Ratings.
The fund invests primarily in U.S. Treasury bonds or government securities. It is considered a safe investment destination with support from the U.S. government.
Tokenization is the process of converting the rights to an asset into a digital token on the blockchain. You can trade a variety of assets online, from bonds to real estate to art.
OpenEden’s TBILL is only available to institutional investors. At the time of this writing, there is a total of over $36 million in value locked up, promising an expected return of 4.99% per annum while charging a trading fee of 0.05%. According to the company’s website, the fund allows users to access U.S. Treasury securities through smart contracts without restrictions on trading time or location.
Moody’s has previously evaluated several tokenized bonds, including those issued by the European Investment Bank (EIB).
T-Bills on-chain
More than $1.5 billion in U.S. Treasury bonds have now been tokenized, marking an important milestone in the integration of traditional finance and blockchain technology.
Traditional Wall Street players like BlackRock and Franklin Templeton are driving this trend. BlackRock recently launched the USD Institutional Digital Liquidity Fund (BUIDL), which has quickly grown to manage a significant portion of the market with $462.7 million in assets. Franklin’s OnChain US Government Fund (FOBXX) holds $357.6 million and is tokenized on both the Stellar and Polygon blockchains.
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