RWA: VanEck Launches Tokenized Fund Backed By US Treasury Securities

VanEck launched on Tuesday the 13th the VanEck® Treasury Fund, Ltd. (VBILL). This is the world’s first real-world asset (RWA) tokenization fund from the global asset manager. This was achieved through a partnership with Securitize, an RWA platform with total assets under management (AuM) of $3.9 billion (as of May 12). This volume is expected to increase soon, as VBILL was designed to provide investors with secure, real-time access to assets backed by the United States Treasury.

VBILL: Exposure to Treasury Securities Across Multiple Blockchains

VanEck, which filed for a BNB ETF in the United States, has just launched the VanEck® Treasury Fund, Ltd. (VBILL) through a partnership with the tokenized RWA platform Securitize. It is a tokenized product that exposes investors to money market funds backed by U.S. Treasury securities.

According to the global investment manager, VBILL offers 24/7 liquidity and real-time settlement, through onramps via the stablecoin USDC.

Initially, the tokenized fund is available on the Avalanche, BNB Chain, Ethereum, and Solana blockchains. Interoperability between blockchains is enabled by the Wormhole protocol to facilitate secure and seamless token transfers.

The new tokenized RWA utilizes integrated services from Securitize, including tokenization, fund administration, transfer agency, and brokerage features to enhance market access, liquidity options, and operational efficiency.

Another feature of the new tokenized investment product is “atomic liquidity” through the U.S. dollar-backed stablecoin AUSD, issued by the financial infrastructure company Agora.

This collaboration combines the best of Securitize’s fully integrated tokenization model with VanEck’s deep asset management expertise. With VBILL, our combined efforts demonstrate tokenization’s ability to create new market opportunities with the speed, transparency, and programmability of blockchain technology.

co-founder and CEO of Securitize, Carlos Domingo.

VanEck’s Digital Assets Product Director, Kyle DaCruz, considered that tokenization of Treasury securities represents “a secure, transparent, and liquid tool for cash management, further integrating digital assets with traditional financial markets”.

Tokenized funds like VBILL are increasing market liquidity and efficiency, reinforcing our commitment to generate value for our investors.

Issuances and Subscriptions

VBILL shares are issued and recorded on blockchain networks, offering investors greater transparency and faster settlement times compared to traditional fund structures. According to VanEck, the fund targets institutional and qualified investors. Minimum subscriptions start at $100,000 for investments on Avalanche, BNB Chain, and Solana, and $1,000,000 on Ethereum.

Regulation, Custody, and Management

The VanEck® Treasury Fund, Ltd. is organized under the laws of the British Virgin Islands, with Van Eck Absolute Return Advisers Corporation acting as investment manager and Van Eck Securities Corporation as marketing agent. Securitize Markets, LLC serves as the placement agent for the offering.

VanEck also reported that it will be administered by Securitize Fund Services, with RedStone acting as the oracle network to provide daily net asset value (NAV) calculations. The fund’s asset custodian is State Street Bank and Trust Company.

Nearly $7 Billion in Tokenized Securities

Data from the platform RWA.xyz at the time of this edition indicated $6.91 billion in RWA tokens solely from U.S. Treasury securities. This represented 45 assets distributed among 18,029 holders.

Of the total, $5.3 billion were tokens minted on the Ethereum network, $455.1 million on Stellar, $295.5 million on Solana, $187.4 million on Arbitrum, $120.5 million on Avalanche, and $139.6 million off-chain.

Contrary to the $21 billion market capitalization of tokenized assets, the CEO of Plume recently stated that the RWA market isn’t really worth that much.