Moody's Awards 'A-bf' Rating to OpenEden’s Tokenized U.S. Treasury Bills Issued by Hill Lights
Summary:
Moody's Ratings has awarded Hill Lights International Limited an 'A-bf' bond fund rating for its issuance of OpenEden’s tokenized U.S. Treasury bills - also known as TBILL Tokens. Available only for institutional investors, TBILL Tokens offer a projected annual return of 4.99% with a 0.05% transaction fee. The move marks a significant step in blending traditional finance with blockchain technology, with over $1.5 billion in US Treasurys already tokenized to date.
Hill Lights International Limited has been awarded an 'A-bf' bond fund rating by global credit rating specialists, Moody's Ratings. This rating covers their issuance of OpenEden’s TBILL Tokens – tokenized U.S. Treasury bills. To clarify, an 'A-bf' rating is a favourable endorsement, meaning that the bond fund is well-positioned to fulfill its financial objectives. A rating of triple-A (AAA) would classify it as elite. Moody's is commonly recognized as one of the three most credible credit rating agencies worldwide, along with Standard & Poor’s and Fitch Ratings. Hill Lights' fund predominantly invests in U.S. Treasury bills, a reliable form of government securities backed by the US administration. Tokenization refers to the method wherein tangible and intangible assets like bonds, real estate, and artworks are transformed into digital tokens on a blockchain, facilitating their online trade. Available exclusively to institutional investors, OpenEden’s TBILL boasts a total value of over $36 million, projecting an estimated annual return of 4.99%, while imposing a transaction fee of 0.05%. OpenEden advertises that the scheme permits participants to engage with US Treasurys via smart contracts without constraints related to trading hours or geography.
The European Investment Bank's tokenized bonds, amongst others, have previously been rated by Moody's. More than $1.5 billion in US Treasurys have been tokenized to date. This indicates a major step forward in blending traditional finance with blockchain technology. Traditional finance giants BlackRock and Franklin Templeton are emerging as leaders in this development. BlackRock recently initiated the USD Institutional Digital Liquidity Fund (BUIDL), which currently manages $462.7 million of the market. The OnChain U.S. Government Money Fund, operated by Franklin (FOBXX), handles $357.6 million and is tokenized on both the Stellar and Polygon blockchains. In April, the Woo X Exchange announced they had launched the world's first tokenized T-bills for retail consumers, offering investors returns on USDC holdings supported by T-bills.
Published At
6/19/2024 7:37:27 PM
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