Backed Finance Rolls Out Crypto-Backed BlackRock ETF on Base Protocol
Switzerland-based blockchain protocol Backed Finance has launched the first-ever tokenized government bond on the Base network.
Culled from BlackRock's iShares bond exchange-traded fund (ETF) UCITS, this financial instrument will be identified by the ticker symbol blB01.
It represents a tokenized short-term US Treasury bond ETF, allowing investors to monitor the underlying asset's value without the need for direct exposure to it.
Providing more details on its mission, Backed Finance stated that its core mission is to create real-world assets (RWAs) that are composable and interoperable with the blockchain ecosystem.
The blockchain protocol operates on the Swiss Distributed Ledger Technology (DLT) Act, which allows it to create Backed-issued tokens (bTokens) that track the value of various assets like treasury ETFs, corporate bond ETFs, and equities.
Impressively, these tokenized assets can be transferred from one wallet to another without any restriction. This way, investors have a digital representation of their RWA without the baggage of physically handling them.
Backed Finance's recent milestone leans into a growing interest in the blockchain and crypto space, which has seen many companies plan to offer ETFs to track some major cryptocurrencies.
A recent instance is the VanEck Ethereum Strategy Fund (or EFUT), which got approval from the US Securities and Exchange Commission (SEC) and started trading on October 3.
Fellow asset management firm Bitwise also got the nod to launch its Ethereum futures contracts from the regulatory body.
Despite the United States being a promising market for blockchain-backed investments, it has been notably docile in providing clear regulatory guidance for the burgeoning industry.
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