VanEck Joins the Race Against BlackRock in Tokenized US Treasuries, Launching on Ethereum, BNB, Solana, and Avalanche
The renowned finance firm VanEck has ventured into the domain of real-world assets (RWA) with the introduction of VBILL, a fund that tokenizes access to short-term U.S. Treasuries on platforms including Avalanche, BNB Chain, Ethereum, and Solana.
This fund represents a pivotal advancement in the institutional adoption of tokenized finance as asset managers compete to present blockchain-focused, yield-generating options in contrast to traditional crypto treasuries.
Uniting traditional finance and cryptocurrency with VBILL
Functioning as a fund registered in the British Virgin Islands, VBILL is overseen by VanEck Absolute Return Advisers, while Securitize serves as the placement agent. It is exclusively available to accredited investors, with a minimum investment of $100,000 on most supported networks and a $1 million minimum for Ethereum. The fund primarily consists of U.S. Treasury bills, safeguarded by State Street Bank & Trust, with daily on-chain NAV data provided by RedStone oracles.
Investors can conduct subscriptions and redemptions using USDC, with token transfers facilitated by the Wormhole protocol. Additionally, VBILL allows for atomic redemption into Agora’s AUSD stablecoin, streamlining liquidity exchange between yield and stablecoin markets.
“By integrating U.S. Treasuries into the blockchain, we offer investors a reliable, transparent, and easily liquid tool for cash management,” stated Kyle DaCruz, Director of Digital Assets Product at VanEck.
Entering a swiftly growing market
VanEck’s initiative comes in the wake of BlackRock’s BUIDL fund, launched in March 2024, propelling the world’s largest asset manager into the tokenization sector. With VBILL, VanEck elevates its efforts by launching across four blockchains from the outset, signaling increasing trust in cross-chain capabilities.
The tokenized T-bill segment has rapidly expanded, recently exceeding $6.8 billion in total value locked, reflecting a more than fivefold increase year-on-year. VanEck’s debut seems to strategically counter BUIDL while striving to provide enhanced flexibility and interoperability for crypto-based treasury desks and stablecoin issuers.
Designed with compliance in mind, but exclusive
Although built on blockchain principles, VBILL is restricted to accredited investors under Regulation D and Rule 506(c) exemptions. Retail access is currently limited, and the fund’s minimum investment requirement of over $100,000 emphasizes its focus on institutional investors.
While the custody by State Street offers conventional security assurances, the product remains susceptible to smart contract risks and vulnerabilities in cross-chain bridges. Important considerations persist regarding redemption processes and liquidity management in times of market stress, particularly for participants engaging with the fund across contrasting blockchain platforms.
“This partnership combines Securitize’s tokenization expertise with VanEck’s insights, demonstrating how tokenization can unlock new market potential,” noted Carlos Domingo, CEO of Securitize.
Transitioning from concept to competition among asset managers
As BlackRock, Franklin Templeton, and now VanEck engage in the RWA landscape, tokenized money-market products are rapidly evolving into a new competitive sphere for traditional asset managers. Each is innovating with diverse combinations of on-chain transparency, liquidity access, and compliance measures to attract a growing audience of crypto-focused capital seeking reliable returns.
With its multi-chain rollout, incorporation of stablecoins, and established institutional backing, VBILL has the potential to be an appealing option for crypto treasurers searching for secure, yield-generating opportunities. As the tokenization of risk-free assets progresses, the distinctions between traditional finance and decentralized finance continue to erode, placing the world’s most secure collateral just a smart contract away.
Post Comment