Moody’s has assigned an ‘A-bf’ rating to OpenEden’s tokenized fund
International credit rating agency Moody's Ratings has assigned an “A-bf” bond fund rating to Hill Lights International Limited, which will issue OpenEden tokenized United States Treasury Bills, known as TBILL Tokens.
An “A-bf” rating is a high credit rating, which indicates that the bond fund has a strong ability to meet its financial goals. The highest rating is the triple-A (AAA) rating. Moody's is considered one of the top three global credit rating agencies, along with Ratings and Poor's and Fitch Ratings.
The Fund invests primarily in U.S. Treasury bills or government securities. They are considered a safe investment because they are backed by the US government.
Tokenization is the process of converting rights to assets into digital tokens on the blockchain. It allows assets ranging from bonds to real estate and artwork to be traded online.
OpenEden's TBILL is only available to institutional investors. At the time of writing, it has locked up more than $36 million in total value, promising an estimated 4.99% annual return while charging a transaction fee of 0.05%. According to the company's website, the fund allows users to access US Treasuries through smart contracts without restrictions on trading hours and locations.
Moody's has previously rated several tokenized bonds, including those issued by the European Investment Bank (EIB).
T-bills onchain
More than $1.5 billion in U.S. Treasuries have now been exchanged, a milestone in the integration of traditional finance with blockchain technology.
Traditional Wall Street players like BlackRock and Franklin Templeton are leading this trend. BlackRock recently launched the USD Institutional Digital Liquid Fund (BUIDL), which has quickly grown to manage a significant portion of the market with $462.7 million in assets. The Franklin OnChain Fund of US Government Fund (FOBXX) holds $357.6 million and is tokenized on both the Stellar and Polygon blockchains.
In April, Woo X Exchange announced the world's first tokenization of T-Bills for retail clients, allowing investors to earn yields on USD Coin (USDC) holdings backed by US T-Bills.
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