Cryptocurrency startup Hamilton has set a precedent by launching tokenized U.S. Treasury bonds on Bitcoin’s layer-2 blockchains. With availability on the Stacks, Core, and BoB (Build on Bitcoin) Bitcoin layer-2 solutions, Hamilton U.S. T-Bills (HUST) made its maiden transaction on July 4.
These tokenized assets merge the steadfastness of the Bitcoin network with the trustworthiness of the U.S. dollar, offering an exciting investment opportunity. Bitcoin’s layer-2 ecosystems are designed to enhance scalability and functionality, providing a blend of Bitcoin’s transparency with traditional U.S. Treasury bills. Hamilton’s co-founder, only identified as Kasstawi, lauds this combination as a major leap towards financial autonomy, particularly for up-and-coming markets.
Tokenized real-world assets (RWAs), including T-Bills, real estate, and securities, have joined the Web3 economy, amassing a total value of $8 billion. RWAs on the layer-2 platform can be swapped, transferred, and applied as leverage. The favorable interest rate policy of the U.S. Federal Reserve has led to T-Bills being on par with stablecoin yields, but with substantially reduced risk.
Bitcoin’s network has encompassed three token standards since 2023. Ordinals emerged early in that year, facilitating the issuance of non-fungible tokens on satoshis, while Runes were launched in April the following year, allowing the direct issuance of altcoins on the Bitcoin blockchain.
The proliferation of layer-2 solutions stems from increasing traffic on Bitcoin’s network, leading to slower transactions and higher fees. Bitcoin’s layer-2 Lightning Network was a response to this, designed to expedite BTC transfers more efficiently than on layer-1. It also enables smart-contract-dependent decentralized finance, or BTCfi, on the Bitcoin network. Bitcoin’s layer-2 solution also hosts Core DAO, which operates a layer-1 blockchain, with backing from cryptocurrency exchanges Bitget, and MEXC.1.