FalconX Introduces Tokenized T-Bill Collateralization as Demand for U.S. Government Securities Rises

• FalconX now supports collateralizing trades with tokenized T-Bill as demand for U.S. government securities rises.
• First trade using USDT as collateral executed on June 11.
• USTB is a digital token representing U.S. government-issued short-term debt securities.
• Acceptance of USTB as collateral due to T-bills offering yields above 5% post-Fed rate hikes.
• FalconX previously accepted BUIDL, an Ethereum-native token backed by U.S. Treasury bills, as collateral.
• Tokenized government securities market value has nearly doubled in the past year, reaching $1.54 billion.

Summary :
FalconX, a crypto-focused prime brokerage, has introduced support for collateralizing trades with tokenized T-Bill as demand for U.S. government-issued securities increases. The company executed its first trade using USDT as collateral on June 11. USTB is a digital token that represents short-term debt securities issued by the U.S. government and can be traded on public blockchains. This move by FalconX comes as U.S. T-bills continue to offer yields above 5% following the Federal Reserve's rate hikes to combat inflation. Some risk-averse traders are opting to invest in T-bill-backed digital assets instead of stablecoins, which can be subject to price volatility if they depeg from their underlying assets. FalconX's acceptance of USTB as collateral is part of their ongoing experimentation with tokenized real-world assets, having previously accepted BUIDL, an Ethereum-native token backed by U.S. Treasury bills. Tokenized government securities and other real-world assets are gaining popularity among investors, with the market value of tokenized government securities under management nearly doubling in the past year to approximately $1.54 billion.

Sources :

- TheBlock