VanEck Launches the World's First RWA Tokenization Fund Targeting Treasury Securities

VanEck launched on Tuesday the 13th the VanEck® Treasury Fund, Ltd. (VBILL). This is the world's first real-world asset (RWA) tokenization fund from the global asset manager.

Global asset manager VanEck launched on Tuesday, 13th the VanEck® Treasury Fund, Ltd. (VBILL), the world’s first real-world asset (RWA) tokenization fund from the firm. This was achieved through a partnership with Securitize, an RWA platform with total assets under management (AUM) of $3.9 billion, as of May 12. The volume is expected to increase soon.

The new offering was designed to provide investors with secure, 24/7 liquidity and real-time access to assets backed by the United States Treasury. This was achieved through onramps via the stablecoin USDC.

Initially, the tokenized fund is available on the Avalanche, BNB Chain, Ethereum, and Solana blockchains. Interoperability between the chains is, in turn, powered by the Wormhole protocol to facilitate the token transfers.

The new tokenized RWA leverages Securitize’s integrated services, which include tokenization, fund administration, transfer agency, and brokerage features to maximize market access, liquidity options, and operational efficiency.

Another highlight is the “atomic liquidity” feature powered by the U.S. dollar-backed stablecoin AUSD, issued by the financial infrastructure firm Agora.

“This collaboration showcases the best of Securitize’s fully integrated tokenization model and VanEck’s deep asset management expertise. With VBILL, our combined efforts demonstrate how tokenization can create new market opportunities with the speed, transparency, and programmability of blockchain technology,” said Securitize CEO, Ben Shapes.

“This is a significant milestone in the evolution of finance, and we are proud to be at the forefront of this innovation.”

Announcing the product earlier this year, VanEck’s Digital Assets Product Director, Kyle DaCruz, considered that tokenization of Treasury securities presents “a secure, transparent, and liquid tool for cash management, further integrating digital assets with traditional financial markets”.

“Institutions are increasingly interested in diversifying their investment strategies and accessing new asset classes. Tokenized funds, like the VanEck® Treasury Fund, Ltd., are opening up new avenues for liquidity and efficiency in the market, and we are fully committed to generating optimal value for our investors.”

Issuances and Subscriptions

The shares of the BVI-lawed VanEck® Treasury Fund, Ltd., are issued and recorded on blockchain networks, offering investors greater transparency and faster settlement times compared to traditional fund structures.

According to the firm, the fund is targeted at institutional and qualified investors. Minimum subscriptions start at $100,000 for investments on Avalanche, BNB Chain, and Solana, and $1,000,000 on Ethereum.

Those interested in investing in the tokenized product can contact the marketing agent, Van Eck Securities Corporation, or the placement agent, Securitize Markets, LLC for more information.

The new offering is being administered by Securitize Fund Services, with the role of the oracle network for daily net asset value (NAV) calculations performed by RedStone. The fund’s asset custodian is State Street Bank and Trust Company.

As for the investment manager, it is Van Eck Absolute Return Advisers Corporation.

Nearly $7 Billion in Tokenized Securities

Data from the platform RWA.xyz at the time of this edition indicated $6.91 billion in RWA tokens solely from U.S. Treasury securities. This represents 45 assets distributed among 18,029 holders.

Of the total, $5.3 billion were tokens minted on the Ethereum network, $455.1 million on Stellar, $295.5 million on Solana, $187.4 million on Arbitrum, $120.5 million on Avalanche, and $139.6 million off-chain.

Contrary to the $21 billion market capitalization of tokenized assets, the CEO of Plume recently stated that the RWA market isn’t really worth that much.