Crypto startup launches US Treasury bonds on Bitcoin Layer-2s
Crypto startup Hamilton launches US Treasury bonds on Bitcoin Layer-2 blockchains. The company says it is the first of its kind.
Hamilton US T-bills (HUST) are available on Stacks, Core and BoB (Build on Bitcoin) Bitcoin Layer-2 solutions. The first transaction with HUST took place on July 4, according to the statement.
BTC network stability and better yield than statcoin
The use of Bitcoin's Layer-2 decentralized financial ecosystem combines the stability of the Bitcoin network with the reliability of the US dollar, the company said. Bitcoin Layer-2s increase the scalability and functionality of the network. According to Hamilton's Founder and CEO Kasawi:
“Combining US Treasury bills with the security and transparency of Bitcoin is a historic step toward financial freedom, providing critical exposure to emerging markets.”
Hamilton's executive was identified only by caste. There is an investor in the blockchain space named Mohamed Ilkastawi.
Related: Bitcoin layer 2s among the catalysts of this bull cycle, Bitcoin says
When Layer-1 goes down, Bitcoin Layer-2s rises
Tokenized real-world assets (RWAs), such as T-bills, real estate, securities, and similar financial instruments, can participate in the Web3 economy by exchanging, transferring, and leveraging. They are locked in at a total value of $8 billion. The US Federal Reserve's interest rate policy has made T-Bills competitive with stable coin yields.
As of 2023, the Bitcoin network has three token levels. Additionally, for Bitcoin (BTC), rounds were proposed earlier that year to enable the issuance of non-fungible tokens minted on satoshis. In the year In April 2024, Runes was launched to enable the distribution of altcoins on the Bitcoin blockchain.
The increased traffic on the Bitcoin network, leading to slower processing times and higher fees, is a driver of Bitcoin Layer-2 development. Bitcoin's Layer-2 Lightning Network is designed to process BTC transfers faster than Layer-1.
Layer-2s enables smart contract-based decentralized finance, called BTCfi, to be performed on the Bitcoin network.
HUST Host Core DAO runs Layer-1 blockchain in addition to BTC Layer-2 solution. It has received support from Bitget and MEXC cryptocurrency exchanges.
Magazine: ‘Bitcoin Layer 2s' Are Not L2s at All: Why Does That Matter?
