VanEck Launches Its First RWA Tokenization Fund Targeting Institutional Investors

The VBILL token fund, introduced on May 13, offers institutional investors access to tokenized US Treasury bills.

A new tokenized fund from VanEck will give institutional investors the chance to invest in US Treasury bills.

The VBILL token fund, which launches on May 13, is part of a partnership with Securitize, the tokenization platform that supports the entire operation of the fund.

It will be open for subscriptions in four major blockchains – Ethereum, Solana, Avalanche, and BNB Chain. On three of those chains (Avalanche, Solana, and BNB Chain), the minimum subscription is $100,000. For Ethereum, the minimum investment is $1 million.

The fund is part of VanEck’s efforts to expand its presence in the real-world asset (RWA) tokenization market. It will offer institutions exposure to one of the biggest traditional asset classes that are currently being integrated into Web3.

The tokenized US Treasury market is already seeing products from BlackRock (BUIDL) and Franklin Templeton (BENJI). In January, Apollo launched a private credit tokenized fund.

According to RWA.xyz data, tokenized US Treasurys have a total market capitalization of $6.9 billion, making it the second-largest asset class in the RWA space, smaller only than private credit.

The VBILL token fund aims to provide institutions with access to Treasury exposure through smart contract systems and digital compliance tools for efficient reporting.

It also expands the presence of large financial institutions in blockchain-based markets. Earlier this year, Franklin launched its BENJI RWA token fund, while Apollo announced a private credit tokenized fund for large investors.

Securitize Platform Supports VBILL Token Fund

The Securitize tokenization platform will be used for the complete operation of VanEck’s VBILL token fund.

Securitize has tokenized over $3.9 billion in assets across various structures by May 2024, and the company also secured $47 million in funding at a valuation of $660 million in a round led by BlackRock.

Securitize’s platform facilitates the issuance and tracking of regulated digital securities. It will help VanEck launch and maintain the VBILL token fund across all four blockchain networks. The platform will be used to ensure digital compliance and record-keeping for the institutional-grade financial instruments.

The partnership will give VanEck access to Securitize’s full-stack infrastructure for managing tokenized assets. This includes smart contract deployment, digital identity checks, and blockchain-based reporting.

It will also provide services for know-your-customer (KYC)/anti-money laundering (AML) screening and administrative capabilities.

Former SEC Chair Weighs In on Tokenization Impact

At a recent U.S. Securities and Exchange Commission roundtable on May 12, on the technical and legal changes needed as more firms adopt onchain models for securities, former SEC Chair Paul Atkins made interesting remarks.

He compared the impact of RWA tokenization to the digital transition seen in the music industry.

“Just as the shift to digital audio revolutionized the music industry, the migration to onchain securities has the potential to revolutionize aspects of the securities market by enabling entirely new methods of issuing, trading, owning, and using securities,” Paul Atkins SEC stated.

He added that blockchain infrastructure could alter the fundamental nature of securities, and that many existing SEC rules do not address the new market structures that are being created by tokenized assets.

The roundtable discussion was held to assess the legal and technical implications as more firms adopt onchain models for capital market instruments.

Paul Atkins SEC highlighted how digital systems may soon introduce new ways to manage securities.