Hamilton Launches Tokenized US Treasury Bonds on Bitcoin Layer-2 Blockchains

Hamilton, a crypto startup, has launched tokenized US Treasury bonds on Bitcoin layer-2 blockchains. According to the company, this innovative move marks

Crypto startup Hamilton has made history by launching tokenized US Treasury bonds on Bitcoin layer-2 blockchains. The first transaction of the HUST tokens occurred on July 4.

The tokens, dubbed Hamilton U.S. T-Bills (HUST), are now available on three Bitcoin layer-2 solutions: Core, Stacks, and Build on Bitcoin (BoB). According to the company, this marks a first in the crypto world.

The initiative combines the stability of the Bitcoin network with the reliability of the US dollar, presenting a unique advantage in the decentralized finance (DeFi) landscape.

Kasstawi, Hamilton’s CEO, expressed enthusiasm for this historic step towards financial independence, which also exposes investors to emerging markets like crypto.

“Hamilton is building the first RWA on Bitcoin. We’re bringing financial independence on Independence Day,” said Hamilton’s CEO in an X post.

The company also says it aims to bring stability, transparency, and liquidity to financial systems in emerging markets.

Hamilton U.S. T-Bills (HUST) will run on three Bitcoin Layer 2 platforms: Stacks, Core, and BoB. Brendon, a contributor to the Core project, expresses his excitement about this development in an X post.

This move reflects a growing trend of tokenized real-world assets (RWAs) participating in the Web3 economy. This innovation converts assets like real estate, securities, and T-Bills into digital tokens that can be traded, transferred, and used within decentralized platforms.

This trend is significant because it brings traditional assets into the digital space, making them more flexible. For instance, investors can now trade or leverage T-Bills on blockchain platforms.

Moreover, the US Federal Reserve interest rates have made T-Bills competitive with stablecoin yields. T-Bills now offer similar returns but come with lower risk compared to stablecoins.

According to Defillama, the total value locked in RWAs is currently at $3.81 billion, with a total market value of over $29 billion. Hamilton predicted the RWA market could surge to $16 trillion by 2030.

Bitcoin’s Evolving Ecosystem

Since 2023, the Bitcoin network has introduced three token standards: Bitcoin itself, Ordinals, and Runes.

Launched early last year, Ordinals create non-fungible tokens (NFTs) on satoshis. In April 2024, Rune was launched to let people create new digital coins on the Bitcoin network.

The increased traffic on the Bitcoin network has driven layer-2 development. Solutions like the Lightning Network aim to process BTC transfers faster than the main chain.

Layer-2s also enable smart contract-dependent DeFi (BTCfi) on the Bitcoin network, expanding Bitcoin’s utility beyond simple transfers.

Core DAO, one of HUST’s host platforms, operates both a layer-1 blockchain and a BTC layer-2 solution. It has gained support from major crypto exchanges like Bitget and MEXC.