Realize T-BILLS Fund Launches as the First Tokenized T-Bills Fund in ADGM
TL;DR:
Realize is tokenizing the first directly tokenized T-Bills Fund in Abu Dhabi Global Market (ADGM), combining regulatory compliance with secure on-chain accessibility. Initially launching on Ethereum and IOTA, the fund offers accredited investors access to U.S. Treasury Bills. Realize is actively expanding its ecosystem with strategic partners and exploring future tokenized fund options. With demand for tokenized real-world assets on the rise, Realize is set to redefine opportunities in traditional and decentralized finance.
Realize, a real-world asset tokenization platform, is tokenizing Realize T-BILLS Fund (OEIC) Limited (the Fund) managed by Neovision Wealth Management Limited (Neovision), the first ever directly tokenized T-Bills Fund in Abu Dhabi Global Market (ADGM), offering fully decentralized transferability and regulatory clarity. The Fund is underscoring the region’s pioneering role in a solid, secure and market-leading regulatory environment to advance real-world asset (RWA) tokenization.
Arvind Ramamurthy, Chief Market Development Officer, ADGM said, “We welcome the launch of the Realize T-BILLS Fund in ADGM, an important initiative in asset tokenization that underscores our commitment to innovation. As a tokenized investment fund adhering to stringent regulatory standards, it positions the international financial centre of Abu Dhabi as a global leader in real-world asset tokenization. We look forward to their contribution to our vibrant ecosystem.”
Realize will initially launch on Ethereum and IOTA. Ethereum, the leading platform for decentralized applications, offers robust smart contract functionality and a large developer community. IOTA, established in 2015, provides efficient, secure token transfers and supports a growing DeFi ecosystem on its newly launched L2 network IOTA EVM. We are also exploring additional networks for future expansion.
Demand for tokenized RWAs is rapidly increasing within both the decentralized finance user base and the traditional finance industry. The platform’s upcoming Web3 ecosystem will provide unparalleled opportunities to utilize tokenized assets.
Initial offering
The initial product to be supported by Realize is a tokenized U.S. Treasury Bill Fund.
Direct tokenization of fund shares
Direct tokenisation is where the securities of the fund are directly tokenized, ie, instead of an issuance of participating shares in a fund, the fund issues security tokens which would then be traded on a platform. The Fund is managed by the Fund Manager in the same manner a traditional fund would. Each $RBILL token represents direct and legal ownership into the Realize T-BILLS fund.
In stark contrast, indirect tokenization involves the fund operating as a more traditional vehicle, issuing participating shares as part of an investment round. These shares are typically subscribed to by a single entity (often offshore), referred to as the Custodian. The Custodian then issues tokens that provide contractual rights to the underlying assets it holds, with investors receiving tokens representing their interests in the ‘Fund.’ However, since the Custodian remains the participating shareholder, the tokenization may fall outside the scope of securities and fund regulations in the fund’s jurisdiction. This results in reduced oversight, higher operational costs, and the introduction of unknown risks for investors.
DeFi opportunities
In the future, Realize hopes to provide additional opportunities through trusted decentralized finance partners, including utilizing tokenized assets as collateral for efficient borrowing and exploring lending strategies. Additionally, investors can benefit from seamless transfers, while also exploring options to increase their yield within Decentralized Finance. We will explore this broad DeFi ecosystem in a separate blog post soon.
Realize has identified additional opportunities connected to real-world assets that we plan to tokenize in the near future, and we are open to exploring RWA deployments with other portfolio managers.
Market growth
Boston Consulting Group (BCG) forecasts that the market for tokenized digital assets will reach $16 to $68 trillion by 2030. This projection underscores the significant potential of tokenisation to revolutionize various asset classes.
Given the team's extensive expertise in traditional and decentralized finance and their strong network of partners, Realize is perfectly positioned to benefit from this emerging market.
Strategic partners
Neovision – Fund Manager
Neovision Wealth Management Ltd. is the Fund Manager of Realize, licensed by the ADGM Financial Services Regulatory Authority. The management team has over two decades of experience in investment research, asset allocation, portfolio construction, and fund management.
Addleshaw Goddard – International and ADGM Legal Counsel
Addleshaw Goddard, headquartered in London, is a leading law firm with nearly 100 lawyers in the Middle East. It is recognized for expertise in funds, corporate/M&A, TMT, and finance. Addleshaw Goddard is the Fund’s legal council and instrumental in guiding Realize and Neovision through the regulatory and legal landscape in establishing the first tokenized T-Bills Fund in ADGM.
Ascent – Administrator
Ascent is a global fund administrator providing customized solutions to asset managers, capital markets, family offices, investors, and private clients. Ascent manages all daily operations of our regulated fund, including investor onboarding and offboarding, regulatory and statutory reporting, investor communications, and maintaining accurate records.
Nakama – Technical Advisor
Nakama, established in 2022 as a Web3 venture fund, has developed leading decentralized applications within the IOTA and Web3 ecosystem. With over 25 team members, Nakama takes a leading role in developing the tokenization dApp of Realize.
Disclaimer
Realize Technology Solutions Limited is an unregulated private limited company with a commercial licence to provide technology and software solutions. The information provided on the Site is for informational purposes only and does not constitute financial, legal, investment advice, or any other form of advice. You are strongly encouraged to seek independent financial, legal, and tax advice from qualified professionals before making any investment decisions, given the significant risks associated with investing in tokenized real-world assets or financial products.
