Kaiko: Rate cut unlikely to limit appeal of tokenized Treasuries
Kaiko publishes a report saying that interest rate cuts are unlikely to limit the appeal of tokenized Treasuries. BlackRock's on-chain tokenized fund, BUIDL, offers exposure to traditional debt instruments such as U.S. Treasuries, and BUIDL has quickly become the largest on-chain fund in terms of assets under management (AUM). Launched in March 2024 in partnership with Securitize, the fund has attracted over $520 million in inflows to date.
If real interest rates remain stable, the potential stimulative effect of a Fed rate cut could be weaker than expected. In that case, United States Treasuries may remain attractive compared with risky assets, as investors may prefer liquidity and safety to risk
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