What are the benefits of blockchain

The benefits of innovation cannot exist on their own. Analysts acknowledge that realising the technology’s full potential requires the legal and “regulatory landscape to evolve alongside advances in tokenisation”.

According to Cointelegraph sources, the US Treasury Department’s Loan Advisory Committee met on 29 October to discuss the merits of adopting stablecoins and tokenising Treasury bills.

The meeting resulted in a report with the following conclusion.

Tokenisation could potentially increase the liquidity of trading Treasury bills by reducing transaction and settlement constraints.

As a reminder, tokenisation is the digitisation of traditional assets based on blockchain. Thus, transactions with them are carried out much more efficiently. Earlier, the strengths of this process were recognised by the largest players in the financial market - in particular, Larry Fink, head of BlackRock, was among them.

Scheme of application of tokenisation

According to the committee members, distributed ledger technologies (DLT) and smart contracts, which are also actively used in crypto, can be particularly useful. They continue.

DLTs can provide greater transparency into treasury market transactions, as well as provide regulators, issuers and investors with a better real-time view of trading activity.

The role of smart contracts in this process is to better manage resources. In addition, the committee noted that stablecoins increase demand for short-term U.S. government bonds. Accordingly, the local economy benefits from their popularisation.

To date, the growth of digital assets has created a modest additional demand for short-term Treasuries. This has occurred mainly due to the increased use and prevalence of stablecoins.


Tether, the issuer of the largest steiblcoin USDT, has been particularly active in this area. Yesterday, the giant reported a net profit of $2.5 billion for the third quarter of 2024. And 1.3 billion of this amount came just on the yield of US Treasury instruments, which the company keeps.

Top altcoins in the tokenisation sphere

One of the committee members suggested creating a blockchain to tokenise short-term bills. Here’s the relevant rejoinder.

The plan should include a cautious approach led by a trusted central authority, with broad support from private sector participants.

Capitalisation of the Stablecoin sphere

As experts point out, real estate, stocks, commodities and even works of art can be tokenised. Tokens in this case represent digital proof of ownership of these assets, which simplifies their purchase, sale and transfer.

Tokenisation makes the above assets more accessible to investors, allows the value to be broken down into smaller pieces, and in addition ensures the transparency of transactions through the use of transparent blockchains.

Larry Fink, head of BlackRock, the largest investment company in the world.

As we’ve already noted, BlackRock has shown interest in tokenisation as a way to modernise financial markets. BlackRock CEO Larry Fink has previously stated that tokenising assets has the potential to improve clearing and settlement, reduce costs and increase liquidity.

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Among other investment firms, altcoins also remain popular. Yesterday, it was reported that 21 Shares filed an S-1 application with the SEC to register and list the 21Shares Core XRP Trust, a spot exchange-traded fund based on Ripple’s XRP token.

The new instrument is looking to be added to the Cboe BZX exchange, with Coinbase, the largest US crypto exchange, acting as custodian for the fund. The quote is cited by The Block.

21Shares continues to work to expand access to the crypto asset class for US investors, and we look forward to innovating in the US.

Throughout the year, many other companies struggled to create cryptocurrency ETFs after the SEC first approved Bitcoin-based spot exchange-traded funds in January. Eventually, the regulator did approve spot Esterium-ETFs in late May.

Approval of cryptocurrency-based ETFs

In June, the firm VanEck filed an application to register a Solana-based ETF, followed by an application from 21Shares with a similar request. Last month, Canary Capital submitted an application to register a Litecoin-based exchange-traded fund.

In addition to 21 Shares, Canary Capital and Bitwise are seeking the right to list an XRP-based ETF. This instrument has not yet been approved by the Commission, and so far its prospects look extremely unlikely. The SEC filed a lawsuit against Ripple back in 2020, accusing the company of raising $1.3 billion by selling XRP as unregistered securities.

The lawsuit between Ripple and the SEC can formally be considered complete. In the summer of 2023, Judge Analisa Torres of the U.S. District Court for the Southern District of New York ruled that purchases of XRP by ordinary people through cryptocurrency exchanges do not make the cryptocurrency an unregistered security.

That said, direct sales of the token to institutional investors are still securities transactions. Judge Torres later ordered Ripple to pay $125 million in fines.


Discussions by representatives of the US Treasury Department confirm the potential of technology at the heart of cryptocurrencies. Accordingly, the latter are proving to be an increasingly attractive investment on a global scale. Therefore, crypto investments are unlikely to surprise anyone in the coming years.

Look for more interesting information in our crypto chat room. We look forward to seeing you there so that you don’t miss the current bullrun in the industry.

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