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Cryptocurrency Startup Launches Tokenized US Treasury Bonds on Bitcoin Layer-2 — TradingView News
Crypto startup Hamilton has launched tokenized U.S. Treasury bonds on Bitcoin’s Layer 2 blockchain. The company says the launch is the first of its kind.
Hamilton US T-Bills (HUST) will be available on Bitcoin layer-2 Stacks, Core and BoB (Build on Bitcoin) solutions. The first transaction with HUST took place on July 4, according to a statement.
BTC network stability and better performance than stablecoins
The use of Bitcoin’s layer 2 decentralized financial ecosystems combines the stability of the Bitcoin network and the reliability of the U.S. dollar, the company said. Bitcoin’s layer 2s improve the scalability and functionality of the network. Hamilton co-founder and CEO Kasstawi said:
“The combination of U.S. Treasuries with the security and transparency of Bitcoin marks a historic step toward financial independence, providing crucial exposure to emerging markets.”
Hamilton’s executive has been identified only as Kasstawi. There is an investor in the blockchain space named Mohamed Elkasstawi.Coin’s Telegraph
Bitcoin’s Layer 2 Takes Off While Layer 1 Slows Down
Tokenized real-world assets (RWA), such as T-Bills, real estate, stocks, and similar financial instruments, can participate in the Web3 economy through exchange, transfer, and leverage. They have reached $8 billion in total value locked. The US Federal Reserve’s interest rate policy has made T-Bills competitive with stablecoin returns with much lower risk.
Since 2023, the Bitcoin network has had three token standards. In addition to Bitcoin (BTC), Ordinals were introduced earlier that year to allow the issuance of non-fungible tokens engraved with satoshis. In April 2024, Runes were introduced to allow the issuance of altcoins directly on the Bitcoin blockchain.
Increased traffic on the Bitcoin network, which leads to slower processing times and higher fees, was a major factor in the development of Bitcoin’s layer 2. Bitcoin’s layer 2 Lightning Network was developed to process BTC transfers faster than layer 1.
Layer-2 also enables smart contract-based decentralized finance, so-called BTCfi, on the Bitcoin network.
The HUST Core DAO host runs a layer-1 blockchain in addition to its layer-2 BTC solution. It has received support from cryptocurrency exchanges Bitget and MEXC.