Introducing Tokenized U.S. Treasuries from OpenEden

OpenEden
3 min readApr 3, 2023

OpenEden has launched the first smart contract vault to offer 24/7 access to U.S. Treasury Bills (T-Bills). Stablecoin holders can mint TBILL tokens via the OpenEden TBILL Vault to earn the U.S. risk-free rate, which yields close to 5% p.a. as of March 2023.

“From the start, we wanted to create the opposite of a ‘trust me bro’ product for DAO treasuries, Web3 institutions, and crypto funds,” said Jeremy Ng, the co-founder of OpenEden. “There is around $130 billion worth of stablecoins sitting on the sidelines and not generating any meaningful yield. As DeFi yields continue to lag further behind traditional financial asset yields, there is a growing demand for institutional-grade DeFi products that offer low-risk, liquid, and transparent returns to stablecoin holders.”

“We have spent the past year building a DeFi-native token that is 100%-backed by real-world assets and fully compliant with regulatory requirements, while offering the most seamless user experience in the market,” said Eugene Ng, the co-founder of OpenEden. “The OpenEden TBILL Vault not only facilitates on-chain access to U.S. Treasury yields, but it is also integrated with a Chainlink Proof-of-Reserves to provide real-time transparency into the underlying assets of TBILL tokens.”

The TBILL difference

  • Direct T-Bills exposure: The value of TBILL tokens is derived from a portfolio of short-duration U.S. Treasury Bills.
  • 24/7 instant settlement: Smart contracts enable instant minting and redemption on-chain, versus up to two business days in TradFi.
  • Regulatory-first: The issuer of TBILL tokens is a professional fund regulated by the British Virgin Islands Financial Services Commission.
  • Real-time transparency: A Chainlink Proof-of-Reserves is integrated with the off-chain custodian to verify the underlying assets and token price in near-real time.
  • Audited and verifiable: OpenEden publishes daily reserve reports from a regulated custodian, monthly valuation reports from a third-party fund administrator, and monthly attestations from an independent auditor.
  • Bankruptcy remote: A regulated custodian holds the underlying assets of TBILL tokens in a fully-segregated account for the benefit of TBILL token holders, removing any risk of commingling with OpenEden’s balance sheet.

Institutional-grade partners

OpenEden collaborates with regulated service providers, leading banks, qualified custodians, and tier-1 legal counsel, including Swissquote Bank (T-Bills prime broker and custodian), Circle (fiat on-ramp), DBS Bank (fiat banking partner), KPMG (tax advisor), Elliptic (blockchain compliance), Harneys (legal counsel), Capital Asia Investments (fund administrator), and TJ Assurance Partners PAC (fund auditor).

Experienced leadership

OpenEden was set up in early 2022 by the former founding team of Gemini APAC, Jeremy Ng and Eugene Ng. The OpenEden core team comes with decades of combined experience in institutional finance and technology, honed at Goldman Sachs, Morgan Stanley, Deutsche Bank, Barclays, Gemini, SEA, Accenture, BlockFi, Bybit, and Binance.

Further information:

About OpenEden

OpenEden is building the bridge to a new financial system. Our mission is to bring real-world assets on-chain to unlock trillions of dollars in value. We believe that internet-native money and decentralisation will open up access to real-world assets for everyone on a global scale, creating a more inclusive, permissionless, and free-flowing economy. Hill Lights International Ltd, the TBILL token issuer, is a professional fund established under the British Virgin Islands Securities and Investment Business Act 2010.

Disclaimer: The information presented above is not intended to solicit you to purchase any financial product(s) directly from us. TBILL tokens are not offered by us or any affiliated entity of ours directly to the public, and will only be offered to “Professional Investors” and “Accredited Investors” in non-restricted jurisdictions.

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OpenEden

First smart contract vault to offer direct access to U.S. Treasury Bills.