Backed IBTA $ Treasury Bond 1-3yr (BIBTA)

Rank #2063

Backed IBTA $ Treasury Bond 1-3yr (BIBTA) is a tokenized product from Backed aimed at bringing real-world assets to blockchain networks. The proposal connects the tokenization of bonds/ETFs with the logic of custody and on-chain representation to offer exposure to a USD bond index with maturities of 1 to 3 years.

What BIBTA seeks to track

bIBTA tracks the iShares $ Treasury Bond 1-3yr UCITS ETF, with the objective of reflecting an index made up of U.S. Treasury bonds with maturities between 1 and 3 years. In practice, the token seeks to mirror the performance of the underlying portfolio within that maturity range.

How Backed tokenization works

Backed issues permissionless bTokens that represent ownership of structured products. These tokens are backed 1:1 by the underlying assets, held by third-party Swiss custodian(s).

In addition to the backing, the bTokens are described as book-entry securities without bankruptcy risk, which seeks to reinforce the separation between the tokenized asset and the operational structure.

Technology, networks, and utility of bTokens

Backed was incorporated in Switzerland in 2021, based on the regulatory clarity brought by the Swiss DLT Act. The first tokenized product was launched on Ethereum at the beginning of the 1st quarter of 2023, and Backed began supporting issuance and redemption across multiple blockchains.

In use, bTokens are used by ecosystem participants, including protocols such as Gnosis and Angle Protocol, within the category of Real World Assets (RWA) and Tokenized Exchange-Traded Funds (ETFs).