Hamilton Launches Tokenized US Treasury Bonds on Bitcoin Layer-2 Solutions, Marking a Milestone in DeFi and RWA Tokenization

Hamilton, a startup specializing in cryptocurrencies, launched the first US Treasury bonds tokenized on Bitcoin layer-2 solutions. This event marks a significant breakthrough in the field of decentralized finance (DeFi) and the tokenization of real-world assets (RWAs).

Crypto startup Hamilton has launched the first US Treasury bonds tokenized on Bitcoin layer-2 solutions.

This marks a major development in decentralized finance (DeFi) and the tokenization of real-world assets (RWAs).

Hamilton U.S. T-Bills (HUST) are now available on Stacks, Core and BoB (Build on Bitcoin) platforms, which are all layer-2 solutions for Bitcoin.

The first transaction with HUST occurred on 4 July 2024, a symbolic date that highlights the historic significance of this launch.

According to Hamilton, this is the first instance of US Treasury bonds being tokenized on the Bitcoin blockchain.

Bitcoin layer-2s have seen increasing adoption for DeFi transactions and the launch of HUST is a testament to this trend.

These layer-2s offer the capability to perform decentralized finance transactions based on smart contracts, also known as BTCfi.

Additionally, they reduce processing times and fees, addressing the congestion issues faced by Bitcoin’s base layer.

The stability of the Bitcoin network, coupled with the reliability of the US dollar, provides a secure and transparent financial environment.

“Combining US Treasury bonds with the security and transparency of Bitcoin marks a historic step towards financial independence, offering critical exposure to emerging markets,” said Kasstawi, co-founder and CEO of Hamilton.

Tokenized Real-World Assets (RWAs), such as Treasury bonds, real estate, securities and financial instruments, are gaining traction in the Web3 economy.

Their total locked-in value has reached $8 billion, indicating a growing interest in these digital assets.

The US Federal Reserve's interest rate policy has made T-Bills competitive with stablecoin yields, offering a lower-risk alternative.

In 2023, the Bitcoin network saw the introduction of three new token standards: Bitcoin (BTC), Ordinals and Runes.

Ordinals enables the issuance of non-fungible tokens inscribed on satoshis, while Runes allows for the creation of altcoins directly on the Bitcoin blockchain.

These innovations have led to increased network traffic, resulting in slower processing times and higher fees.

To address this congestion, layer-2 solutions like the Lightning Network have been developed, enabling faster BTC transfers compared to layer-1.

HUST Core DAO operates a layer-1 blockchain in addition to its layer-2 solution on Bitcoin.

It has garnered support from major crypto exchanges, including Bitget and MEXC, which is a testament to the strong interest and trust from the crypto community in this launch.

Hamilton's launch of tokenized US Treasury bonds marks a significant moment in the evolution of decentralized finance and the tokenization of real-world assets.

This project, supported by Bitcoin's layer-2 solutions, combines stability, security and transparency, presenting new opportunities for investors and accelerating the adoption of blockchain in the financial sector.

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