Crypto exchange WOO X has joined forces with OpenTrade to reshape the landscape of tokenized assets in Asia. However, this partnership is designed to offer tokenized U.S. Treasury bill products to Asian markets.
A partnership geared towards yield and expansion
WOO X, a Seychelles-registered crypto exchange, has clarified that Asia remains its priority for expansion. Moreover, the company recently completed its integration with South Korea’s CODE compliance. Jack Tan, the founder and CEO of WOO, stated that the alliance with OpenTrade would “strengthen our position in Asia.” He added that the partnership allows users to earn yield via tokenized T-Bills and borrow USDC-secured loans against liquid assets.
OpenTrade, on the other hand, is a newcomer focusing on tokenized real-world assets. The platform launched a series of services last Friday, including lending products for U.S. Treasury Bills. These products are built with Perimeter Protocol, an open-source protocol developed by Circle Research.
The growing appetite for tokenized assets
The demand for tokenized T-Bills is on the rise, fueled by higher yields on U.S. government bonds compared to decentralized finance options. OpenTrade’s tokenized U.S. Treasury bill pool is accessible to a wide range of investors, including individual accredited investors, regulated institutions, and decentralized autonomous organizations. Third-party distributors can also integrate OpenTrade’s pool to power their own white-labeled yield offerings.
The tokenized treasuries market has seen significant growth, expanding sixfold this year to $668 million. Asset management firm Franklin Templeton has emerged as the biggest player in the tokenized assets market. OpenTrade’s tokenized Treasuries pool is backed by the USDC stablecoin and developed using Circle’s Perimeter Protocol.
Additionally, OpenTrade has plans to introduce a variety of on-chain yield products, including investment-grade commercial paper and supply-chain financing. This comes at a time when the opportunity for trade financing using blockchain technology is particularly attractive. According to a report by the Asian Development Bank, there’s a $2.5 trillion unmet financing demand from market participants.
