#bonds

Tokyo-based investment firm Metaplanet announced issuing 1.75 billion yen (over $11 million) to increase its Bitcoin holdings.

Justin Schmidt, the Chief Operating Officer at Ondo Finance, which specializes in tokenized securities, is confident that yield-bearing stablecoins will outpace their traditional counterparts in the future. He notes that current issuers of such tokens are channeling investments into U.S. Treasury bonds and deposits, thereby securing their own profits, while regular users remain deprived from yield-generation.

The initial offering of tokenized bonds ALT2611 on Bitfinex Securities, a platform focusing on RWAs, failed to attract the expected interest.

With the increasing yield of long-term treasury bonds, Jerome Powell of the US Federal Reserve has suggested a potential pause in boosting the interest rate.

In an interview with The Block, JPMorgan analysts expressed their belief that tokenized bonds backed by real-world assets (RWAs) could pose a significant challenge to stablecoins.

Moody's, a financial services company, has expressed that the adoption of tokenized funds is enhancing the efficiency of investment in government bonds and recognizes significant unexplored potential in this area.

The Philippines’ Bureau of the Treasury collaborates with the nation's central bank to use digital currency (CBDC) for the sale of tokenized government securities. This week, the government successfully raised $271 million through tokenized one-year bonds.

As FTX undergoes restructuring, it finds itself clashing with the Official Committee of Unsecured Creditors over asset governance. John Ray III has shown unease about UCC's idea of diverting $2.6 billion to U.S. Treasury bonds, all to offset anticipated professional expenses of nearly $330 million. FTX has formerly assailed UCC's strategy and blamed the committee of attempting illegal oversight over client assets.

Contrary to forecasts, the value of Salvadoran bonds rose by 62% after Fitch downgraded the country's credit rating in September 2022. Perhaps the 79% surge in BTC during the same period played a role in this unexpected turn of events. In 2021, El Salvador declared Bitcoin as legal tender and currently holds 2546 BTC. Despite skepticism from the IMF, the country also allocated $1 billion for the construction of a mining farm with a capacity of 241 MW.