FalconX has launched tokenized U.S. Treasury fund trading

ChainCatcher news, according to The Block, FalconX has launched tokenized treasury fund trading as some investors show increased interest in securities issued by the U.S. government.

According to a FalconX representative speaking to The Block, the crypto-focused brokerage executed its first trade on June 11. USTB is a digital token representing short-term bonds issued by the U.S. government, which can be traded on a public blockchain.

The company's support for trading this token is due to U.S. Treasuries continuing to offer yields above 5%, following the Federal Reserve's interest rate hikes to curb inflation. As a result, some risk-averse traders are investing in digital assets backed by Treasuries instead of stablecoins, which may experience price volatility if they decouple from the underlying assets.