Kaiko: Rate cut unlikely to limit appeal of tokenized Treasuries
Kaiko publishes a report saying that interest rate cuts are unlikely to limit the appeal of tokenized Treasuries. BlackRock's on-chain tokenized fund, BUIDL, offers exposure to traditional debt instruments such as U.S. Treasuries, and BUIDL has quickly become the largest on-chain fund in terms of assets under management (AUM). Launched in March 2024 in partnership with Securitize, the fund has attracted over $520 million in inflows to date.
If real interest rates remain stable, the potential stimulative effect of a Fed rate cut could be weaker than expected. In that case, United States Treasuries may remain attractive compared with risky assets, as investors may prefer liquidity and safety to risk
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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