With the Ultra Fund, Libeara and FundBridge Capital increase blockchain finance by bringing US Treasury assets onchain.
FundBridge Capital, a fund management infrastructure, and Libeara, a blockchain asset tokenization platform, have introduced a tokenized US Treasurys fund for investors on a public blockchain.
Investors can access US Treasurys digitally through the offering known as the “Delta Wellington Ultra Short Treasury On-Chain Fund, or Ultra Fund.”
The fund is set up to provide tokenized unit subscriptions, transfers, and redemptions via Libeara’s Delta platform to offer an open, auditable, and adequate fund administration solution.
To increase accessibility for cryptocurrency investors, the Ultra Fund will first be made available on the Ethereum mainnet before moving on to Arbitrum, Avalanche, and Solana.
Web3 requires a safe investment.
Using distributed ledger technology, Libeara’s platform will enable users to engage with tokenized units. Libeara founder and CEO Aaron Gwak called this “a significant step forward.”
Gwak compared the fund to the SGD Delta Fund, a tokenized Singapore dollar-denominated fund, claiming it adds “institutional credibility to USD-denominated investments.”
The formed fund encourages the integration of blockchain technology into traditional finance while providing investors with new digital and Web3 channels to access US Treasurys.
Implications of convergence
The Ultra Fund allows financial institutions to embrace tokenization for increased accessibility while reducing operating expenses by fusing blockchain technology with traditional finance (TradFi).
The fund’s sub-manager, Wellington Management, a worldwide asset management company, supports attracting institutional and Web3 investors.
According to Wellington Management’s director of digital assets and tokenization, Mark Garabedian, tokenization is “a new frontier” in asset management.
He continued that FundBridge’s strategy is in line with Wellington’s, adding it may provide “enhanced access and operational efficiencies to clients.”
Going mainstream
London-based Standard Chartered Bank, which will serve as the fund’s custodian, sees the partnership as assisting its customers who want exposure to digital assets.
Being a well-known supporter of cryptocurrencies, the company’s participation in the partnership is not surprising given that Geoff Kendrick, an analyst at the Bank, forecast that Bitcoin BTC$71,777 will hit $125,000 by the end of the year.
If former Republican President Donald Trump is elected to a second term, Kendrick predicted that the price of Bitcoin will continue to rise, reaching $73,000 by the US presidential election on November 5.