Libeara Tokenizes Wellington Treasury Fund, Bridging TradFi and Crypto

Introduction

In a move signaling the continued convergence of traditional finance (TradFi) and blockchain technology, Singapore-based startup Libeara has tokenized the Wellington Ultra Short Treasury Fund. The resulting Delta Wellington Ultra Short Treasury On-Chain Fund, dubbed the "ULTRA Fund", provides digital access to US Treasuries on Ethereum and other blockchains.

Bridging Institutions and Crypto Natives

Libeara, founded by Standard Chartered's SC Ventures, partnered with FundBridge Capital to launch the tokenized fund. Wellington Management serves as the sub-manager. The key players showcase the fund's aim to bridge the worlds of institutional finance and crypto.

The ULTRA Fund is designed to attract a mix of traditional and crypto-native investors by offering exposure to a high-grade asset class in a blockchain-based format. As Mark Garabedian, Director of Digital Assets and Tokenization at Wellington, explains:

"By leveraging blockchain technology, FundBridge can deliver enhanced access and operational efficiencies to clients, aligning with Wellington's commitment to providing innovative, best-in-class investment solutions."

The Benefits of Tokenization

The launch highlights the growing interest from TradFi in the benefits tokenization can offer, including efficiency gains and instant settlement. The latter is particularly appealing for using the tokenized fund as collateral.

Mountain Protocol, the issuer of the USDM stablecoin, plans to invest in the ULTRA Fund for this very purpose. Libeara is also partnering with Ondo Finance to utilize its intraday redemption mechanism.

"We believe this fund and the tight relations with sponsoring entities allow for great operational efficiency and are a step forward in further institutionalizing crypto," said Martin Carrica, CEO and Co-Founder at Mountain Protocol.

Following in Rated Footsteps

The ULTRA Fund is modeled after Libeara's SGD Delta Fund, which made headlines as the first tokenized fund to receive a Moody's rating. The SGD Delta Fund secured an impressive Aa rating, lending institutional credibility to the emerging sector.

Aaron Gwak, Founder and CEO of Libeara, sees the ULTRA Fund extending this momentum: "This new fund, modelled after the SGD Delta Fund — which became the first tokenized fund to receive a rating of Aa from Moody's — brings the same level of institutional credibility to USD-denominated investments."

Joining a Growing Cohort

With its launch, the ULTRA Fund joins a growing list of tokenized money market funds tied to traditional finance giants. BlackRock's BUIDL, Franklin Templeton's FOBXX, and DRW-affiliated Hashnote's USYC have each attracted hundreds of millions in assets under management.

However, Libeara's offering stands out for its Singapore base. While some TradFi tokenized funds are incorporated offshore or target mainly US clients, the ULTRA Fund's location could appeal to investors in Asia and beyond.