Investment in Tokenized Treasury Products by Sky
Sky, previously known as MakerDAO, has initiated an ambitious $1 billion investment plan aimed at accelerating the adoption of real-world asset (RWA) tokenization. This initiative is set to significantly enhance the lending capabilities of Spark, a decentralized finance (DeFi) platform that operates adjacent to Sky.
Among the beneficiaries of this investment are several innovative tokenized Treasury products. The collaboration with BlackRock and Securitize, which has produced the BUIDL token, is expected to receive a substantial allocation of $500 million. This product is notably backed by U.S. Treasury bills and repurchase agreements, ensuring a solid foundation for investors.
Superstate’s USTB is also a key player in this investment landscape, slated to receive $300 million, while Centrifuge’s JTRSY, a Treasury bill fund that has joined forces with asset managers Anemoy and Janus Henderson, is set for a $200 million allocation. This funding is part of a broader strategy to enhance the liquidity and capital efficiency of tokenized assets.
The selection process was rigorous, with 39 applicants evaluated by the advisory firm Steakhouse Financial, which specializes in RWAs and plays a pivotal role in Spark’s ecosystem. The winners were chosen based on several criteria, including their ability to maintain liquidity and demonstrate capital efficiency. Spark has indicated that the final allocations will be market-driven and capped at the overall $1 billion limit.
Pending governance approval, the selected tokenized assets may be utilized as collateral for Sky’s native stablecoin USDS and its yield-bearing equivalent, sUSDS. This move marks a significant step in the ongoing trend of blockchain-based protocols integrating tokenized versions of traditional financial assets, such as bonds, funds, and credit.
Looking ahead, Sky has outlined plans to invest a total of $1 billion in tokenized U.S. Treasury bills throughout 2024, drawing interest from a diverse array of issuers. This allocation is anticipated to provide a notable boost to the rapidly expanding market for tokenized U.S. Treasuries, which currently stands at an impressive $4.6 billion, according to data from rwa.xyz.
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