Former senior executives from the digital-asset exchange firm Gemini have revealed their ambitions to launch a token backed by US Treasury Bills. Because of the disparity in returns between traditional finance and decentralized crypto lending, the aforementioned token is predicted to yield roughly 5%.
Former Gemini Executives Launched OpenEden
The cryptocurrency platform OpenEden was formed by former leaders of Gemini‘s Asia Pacific and business development for the area. The aforementioned pair announced their departure from Gemini in the final month of 2021 and gave as their justification a desire to concentrate on their own cryptocurrency business.
You may recall that Eugene recently said, “Something is cooking,” ever since he and Jeremy departed Gemini. After saying that, he asserted that they would be making a disclosure in the coming few months. “Many parties” were involved, he continued.
In recent times, it has become more evident that the former executives’ choice to leave the respective exchange was motivated by their interest in OpenEden, which attempts to bridge traditional finance and cryptocurrencies by tokenizing traditional financial assets like U.S. Making Treasury bills available on blockchain systems.
OpenEden Introduces US T-Bills
The US Treasury Bill, which is known to be issued by the US Treasury Department to fund the government’s activities, is considered one of the “safest investments” in today’s market. In light of this, OpenEden wants to tokenize these instruments and introduce them to the blockchain.
Users of the aforementioned platform would purportedly receive a certificate of ownership for the underlying T-Bill in the form of TBILL tokens. Due to the transferability of the aforementioned certificate on the blockchain, users will be able to more easily purchase, sell, and trade US T-Bills on secondary markets, giving them more freedom than with traditional investments.
The platform is thought to be unique in that it will allow users to exchange US Treasury bills without the use of intermediaries such as banks or clearinghouses. This would result in greater openness, faster settlement times, and lower trading costs.
Jeremy previously stated in an interview that investors used to flock to DeFi for yields, but now he claims that “the tables have turned,” as crypto investors can now achieve higher returns in traditional finance as DeFi returns, or APY rates, continue to fall amid the recent crypto meltdown.
Users can redeem TBILL tokens at a 5% interest rate dependent on the yield on the underlying T-bills at the time of writing. DeFi yield on USDC, on the other hand, is currently less than 2% on Aave and Compound.
It is also worth noting that Jeremy stated that TBILL tokens would be issued by a British Virgin Islands-regulated fund. Furthermore, OpenEden will be in charge of the token smart contract vault.