The German tokenization protocol, Midas, has revealed a tokenized US Treasury bill on the Algorand blockchain. This innovation exposes European investors to yield-bearing government bonds without any requirement for a minimum investment. The announcement of this new offering, known as mTBILL, was made on May 29.
The mTBILL is a tokenized certificate representing short-term US Treasury exchange-traded funds (ETFs). On May 27, the first atomic swap was successfully carried out by a third party on the Algorand blockchain, where $2 million in USDC was swapped for mTBILLS.
Midas claims that the mTBILL provides a more accessible entry point for retail investors compared to existing tokenized money market funds like BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), which demands a minimum investment of $5 million. Contrarily, mTBILL doesn’t impose any minimum investment, potentially making it more appealing for retail investors. As of May 29, mTBILL offers a net yield of 4.06%.
Algorand is a decentralized network renowned for offering scalable applications and quick transactions. According to CoinMarketCap, it has a market capitalization of $1.84 billion. The Algorand Foundation welcomed the mTBILL launch, stating, “These assets will make their way to our DeFi ecosystem in the coming weeks.”
Tokenized money market funds are witnessing a surge in popularity due to the growing institutional acceptance of digital assets. BlackRock’s BUIDL has experienced a significant increase in total value locked, with funds tripling over a three-week period. Additionally, Franklin Templeton joined the tokenization fray by launching its OnChain US Government Money Fund on Solana and Base, Coinbase’s layer-2 network.
