Treasurys on the blockchain: How a recent agreement might change the ETF market? Tokenization and blockchain technologies have the potential to disrupt the established ETF business.
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| Treasurys on the blockchain |
Treasurys on the Blockchain
The creation of Anemoy's Liquid Treasury Fund (LTF), an on-chain technology-based fund that will provide investors with direct access to short-term U.S. Treasury bills, is being spearheaded by Janus Henderson, in collaboration with Anemoy Limited and Centrifuge.
Head of innovation at Janus Henderson, Nick Cherney, stated this week on CNBC's "ETF Edge" that "it's not necessarily a threat to the ETF industry." "I believe it's more of a natural evolution of our efforts to make the way we provide our clients with investment services more cost-effective and efficient."
"We aim to seize that chance as soon as possible," he declared.
This is Janus Henderson's first tokenized fund, the company announced in a news release.
Cherney notes that it would have all of the typical characteristics of an ETF. However, investors might purchase and sell it on a blockchain-based platform, giving the end investor access to "instantaneous 24/7 trading, instantaneous settlement, total transparency over fund holding, so even beyond what ETFs provide."
He agreed that it could fundamentally alter the way some businesses operate.
"I think there are certainly people in the ecosystem for whom it's potentially threatening, but you see those players getting involved," according to Cherney.
Strategas Securities’ Todd Sohn is concerned about the risks associated with constant trading availability.
“24/7 trading makes me nervous. That’s the one part where I’d want to be a little bit careful depending on who is using this,” the firm’s ETF and technical strategist said.
What is treasury in blockchain?
A treasury system is a collaborative decision-making process that is community-controlled, decentralized, and enables sustainable funding for the upkeep and development of blockchain technology. Project proposals are presented, debated, and voted on throughout each treasury session; the projects that score highest receive funding from the treasury.
How much can I deposit on Blockchain?
The amount you can deposit on Blockchain varies depending on the specific cryptocurrency and your chosen payment method. Generally, there are no strict limits for deposits in most cryptocurrencies. However, it's best to check the specific terms on the Blockchain platform or your payment provider for any applicable limits or fees.
How to use blockchain in finance?
You can use blockchain in finance to enhance security, transparency, and efficiency. It allows for secure transactions without intermediaries, enables real-time settlement of trades, and reduces fraud risk. Blockchain can also streamline processes like cross-border payments, smart contracts, and asset tokenization, making financial operations faster and more cost-effective.
Can Blockchain be used for financial transactions?
Blockchain can speed up issuance and settlement times, lower counterparty risk, and simplify banking and lending services. It permits: KYC/AML data and authenticated documentation, lowering operational risks and facilitating instantaneous financial document verification.