Below is a guest article by Jesse Knutson, Head of Operations at Bitfinex Securities.
In developed countries, access to the US dollar is obvious. Investors rarely need to consider incorporating US religious assets into their portfolios, as the relative stability of the local economy provides a sufficient foundation for financial security.
This contrasts with many emerging economies where access to the US dollar is essential for businesses and individuals to protect their wealth. However, this is difficult due to large deficits, non-economic exchange rates, and regulatory challenges in some jurisdictions.
It doesn’t matter where you live in the world. Most businesses and individuals share the same goals. It is about being financially safe, growing wealth and creating a solid financial foothold for the next generation. If the currency is unstable or inflation is high, achieving these targets in the Global South is extremely difficult. In these circumstances, savers are asking their assets to be placed in the relative stability of the US dollar. Without access to the dollar, it can feel like building on top of a quick sand. No matter how hard I try, my basics continue to shift.
Until relatively recently, there were only two actual options for acquiring the dollars of traditional banking institutions or black markets. While traditional methods include bureaucracy, high fees, and limited availability, black markets are exposed to significant risks, including fees that can fluctuate users and potential legal consequences.
The appearance of Crypto turned this to his head. Stablecoins offers almost instant access to the dollar for anyone with an internet connection with virtually no transaction fees. This has proven to be a lifeline, even in double battles and everyday triple digit inflation.
A recent report by Castle Island Ventures found that 69% of crypto users in Brazil, Nigeria, Turkey, Indonesia and India converted their local currency to Stablecoins. Users said they prefer to use stable coins instead of accessing the US dollar by more traditional means, as it is more efficient, less likely to interfere with governments, and potential for yields.
Stubcoins generally work well, but more sophisticated financial products based on blockchain technology emerge, with the dollar trading in religious systems, providing advantageous and predictable yields.
Investors are increasingly attracted to tokenized funds that provide exposure to the US government’s T-Bill. This small, yet growing asset class appears to have momentum behind it. Tokenized US Treasury total amount increased by 415% in 2024 alone, and is now the second largest real-world asset cryptocurrency category at RWA.xyz.
Much of this growth is driven by two biggest funds: USYC on Hashnote and Buidl on BlackRock. But both have eligibility requirements that exclude the majority of people who can benefit most. USYC has a minimum investment of $100,000, and Buidl is only available to accredited US investors.
This is clearly out of scope for most people who fight new market inflation on a daily basis. The essence of tokenization is to rethink ways of funding and democratizing global access to investment opportunities.
Tokenized US T-Build Funds may be suitable for everyone. Small amounts of retail investors in investments can get what they can get by being exposed to US government debt (arguably the safest asset in the world) and parking reserve capital on products that yield that investment .
Nexbridge proves that it can. Recently, we launched USTBL, which is the first to offer a tokenized T-bill with Bitcoin-based technology. With a minimum ticket size of just 1 USDT, oversight from El Salvador’s National Digital Assets Commission, and transfer restrictions implemented on the liquid network, USTBL balances inclusion, regulatory compliance and long-term sustainability.
Democratizing access to finance is at the heart of blockchain’s promises. As tokenized funds gain excellence, we must continue to be tools for empowerment. Break barriers, level the arena, unlocking opportunities for individuals wherever they are in the world.
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