Crypto startup Hamilton has debuted tokenized United States Treasury bonds on Bitcoin’s layer-2 blockchains, marking a pioneering initiative, the company asserts.
Dubbed Hamilton U.S. T-Bills (HUST), these assets are accessible on Stacks, Core, and BoB (Build on Bitcoin) layer-2 platforms. The inaugural HUST transaction took place on July 4, as per an official announcement.
According to Hamilton, leveraging Bitcoin layer-2 decentralized finance ecosystems amalgamates the robustness of the Bitcoin network with the stability of the U.S. dollar. This integration is designed to bolster network scalability and functionality. Kasstawi, CEO and co-founder of Hamilton, commented on the development.
The executive, identified only as Kasstawi, is prominent in the blockchain investment sector, notably associated with Mohamed Elkasstawi.
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Source: Hamilton
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Tokenized real-world assets (RWAs), including T-Bills, real estate, securities, and similar financial instruments, contribute to the Web3 economy by facilitating swaps, transfers, and leveraging. These assets have achieved a total locked value of $8 billion. The competitive yield of T-Bills, influenced by the U.S. Federal Reserve’s interest rate policies, is comparable to stablecoin returns but with lower risks.
Since 2023, the Bitcoin network has introduced three token standards. Additionally, Ordinals were launched earlier in the year to enable the issuance of non-fungible tokens linked to satoshis. In April 2024, the introduction of Runes enabled direct issuance of altcoins on the Bitcoin blockchain.
Growing congestion on the Bitcoin network, resulting in slower transaction processing times and higher fees, has accelerated the development of Bitcoin layer-2 solutions. The Lightning Network, a prominent Bitcoin layer-2 solution, was developed to expedite BTC transfers compared to layer-1.
Layer-2 solutions also facilitate decentralized finance dependent on smart contracts, known as BTCfi, on the Bitcoin network.
The Core DAO managing HUST operates a layer-1 blockchain alongside its BTC layer-2 solution, receiving support from cryptocurrency exchanges like Bitget and MEXC.
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