Libeara and FundBridge Capital collaborate to launch the Delta Wellington Ultra Short Treasury On-Chain Fund: the advantages of blockchain and tokenization in the management of US Treasury funds enhance efficiency and transparency.
Let’s see all the details in this article.
An innovative tokenization solution for US Treasury funds, managed by Wellington Management and supported by public blockchain
Libeara, the leading platform in the tokenization of real assets (Real World Asset, RWA) supported by SC Ventures, the venture building and fintech investment arm of Standard Chartered, has announced a strategic collaboration with FundBridge Capital.
This partnership with the MAS-regulated operator from Singapore involves the launch of the Delta Wellington Ultra Short Treasury On-Chain Fund (“ULTRA Fund”).
That is, a U.S. Treasury fund managed in collaboration with Wellington Management Singapore Pte. Ltd. as sub-manager.
The innovative structure combines the fund tokenization system of Libeara’s Delta platform with the advanced experience of Wellington Management in asset management.
Offering thus investment solutions of a new generation that meet the needs of the Web3 community.
The ULTRA Fund was established through the Delta Master Trust structure, created by FundBridge to support the processes of subscription, issuance, transfer, and redemption of the fund’s tokenized units.
This fund will be accessible both in USDC and in fiat currency and, initially, it will be implemented on the Ethereum Mainnet.
The platform is based on distributed ledger technology, ensuring a secure and smooth user experience for investors, with high transparency and auditability of subscription, redemption, and transfer processes of investments.
Furthermore, the tokenized units will soon be available on other blockchains such as Arbitrum, Avalanche, and Solana.
Aaron Gwak, founder and CEO of Libeara, stated the following:
“This collaboration with FundBridge Capital for the ULTRA Fund represents a significant step in expanding our tokenization ecosystem. This new fund, modeled on the Delta Fund SGD, the first tokenized fund to receive an Aa rating from Moody’s, brings the same institutional credibility to investments denominated in USD.”
New modes of interaction thanks to the blockchain
Gwak highlighted how tokenization is transforming the mobility of assets, offering investors new ways to interact with their investments, including the possibility of using fund units as collateral.
This advanced level of asset flexibility is made possible thanks to blockchain technology and smart contracts.
Which automate complex processes such as collateralization and ensure an efficient transfer of ownership when necessary.
“Through this collaboration, we consolidate our commitment to providing a secure and scalable infrastructure to meet the evolving needs of issuers and investors in the digital landscape.”
The Delta Wellington Ultra Short Treasury On-Chain Fund received a positive reception from the Web3 community, with initial interest from stablecoin issuers, exchanges, and decentralized autonomous organizations (DAO).
Among the first to interact with this on-chain solution, we find Mountain Protocol, Drift, and Ondo Finance. The latter will support the tokenized units of the fund, providing technology for same-day redemptions.
Mark Garabedian, director of digital assets and tokenization for Wellington Management, states:
“Tokenization represents a new frontier in asset management, and we are excited to continue this journey by collaborating with Libeara, FundBridge, and Standard Chartered, which acts as a custodian, in this pioneering initiative. Thanks to blockchain, FundBridge can provide clients with optimized access and greater operational efficiency, in line with Wellington’s commitment to offering innovative and cutting-edge investment solutions.”
The purpose of the project: institutionalization of the crypto sector
Martin Carrica, CEO and co-founder of Mountain Protocol, added:
“By participating in the Delta Wellington Ultra Short Treasury On-Chain Fund, we access a completely on-chain short-term treasury solution that meets our mandate for ultra-safe investments and increases transparency for our users. We believe that this fund and the close relationships with the sponsoring entities allow for great operational efficiency, representing a step forward for the institutionalization of the crypto sector.”
This partnership represents a significant milestone in the adoption of tokenization in traditional financial markets.
Thus demonstrating the transformative potential of blockchain in improving operational efficiency and offering a superior experience for investors.
Even Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, provided her positive opinion:
“We remain committed to supporting clients in the digital asset ecosystem through our custody and banking services at Standard Chartered. By collaborating with Libeara and other SC Ventures companies, we aim to foster innovation and growth in the field of digital assets.”