• Neovision and Realize launch the Realize T-BILLS Fund, investing in US Treasury bill ETFs from BlackRock and State Street. 
• The fund will tokenize ETF units into digital tokens, enabling on-chain trading and transfers. 
• Neovision aims to grow the fund to USD 200 million, tapping into the USD 2.4 billion tokenized Treasury market.

Abu Dhabi-based Neovision Wealth Management, in collaboration with Realize, has introduced an investment vehicle that will acquire units of exchange-traded funds (ETFs) focused on US Treasury bills.

These assets can also be tokenized into digital tokens, which can then be held, traded, and transferred on a blockchain.

Aims for USD 200M Fund Growth

The fund, named Realize T-BILLS Fund, will purchase ETFs from BlackRock’s iShares and State Street’s SPDR, and Realize will tokenize these units. Dominik Schiener, co-founder of Realize, shared the details in an interview with Reuters. Neovision will manage the fund, aiming to grow it to USD 200 million.

Earlier in March, BlackRock launched its first tokenized fund, BUIDL, on the Ethereum blockchain. It invests entirely in cash, US Treasury bills, and repurchase agreements. The fund currently has a market cap of USD 530 million.

“The goal is to bring fungible assets onchain. T-Bills are the most liquid asset today in the real world,” said Schiener. “They’re also the best form of collateral, paying around 5%.”

Ryan Lemand, co-founder and chief executive officer of Neovision, said it makes sense to buy T-Bill ETFs and tokenize them, instead of outright purchasing Treasury bills in the market. He noted buying cash Treasuries in the market would involve continuous transaction costs. That is because they will have to be bought again and again.

Moreover, tokenized Treasuries are a growing segment of the crypto market, with a market capitalization of USD 2.4 billion on public blockchains, primarily Ethereum, Reuters added.

Crypto Market Insights in the UAE

Revenue in the United Arab Emirates’ cryptocurrency market is expected to reach USD 263.1 million in 2024. However, the market is projected to decline at an annual rate of -3.34% (CAGR 2024-2025). This is bringing the total to USD 254.3 million by 2025, according to Statista.com.

The estimated average revenue per user in 2024 is USD 70.0. Globally, the United States leads the cryptocurrency market with projected revenue of USD 9,788 million in 2024, according to the same source.