- Tokenisation will enable financial giants to tap into the $27 trillion Treasury market, S&P Global Ratings says.
- While efforts from BlackRock and Franklin Templeton could drive confidence, legal hurdles remain.
BlackRock’s BUIDL fund has paved the way for investors to tap into the $27 trillion market for US government bonds.
The tokenised Treasury market has already amassed over $1 billion on public blockchains, primarily Ethereum, but this could be just the beginning, according to Andrew O’Neill, digital assets managing director at S&P Global Ratings.
“The tokenised Treasuries market is picking up,” O’Neill wrote in a report on Tuesday. The launch of BlackRock’s Ethereum-based tokenised fund BUIDL in March accelerated this trend, he said.
Benefits for issuers and investors include allowing on-chain businesses to access real-world yields, O’Neill wrote.
The report is the latest indication of the financial sector’s growing…
