Hello to everyone in the community! We want to introduce this forum to OpenEden, a compliant-first RWA protocol.
The OpenEden TBILL Vault is the first smart contract vault managed by a regulated entity (BVI registered professional fund) to offer 24/7 and direct access to T-Bills. Investors mint “TBILL” tokens instantaneously when they deposit USDC into the Vault, which are contractual representations of their interests to a proportionate share of underlying assets, which include USDC, fiat USD and T-Bills.
The Vault was launched in May 2023 and accepts USDC deposits. At the time of writing, the TVL of the Vault is approximately $11.5 million and offers a net estimated yield of about 5.33% on invested assets, the highest among all other tokenised T-Bills offerings. With fees being waived for the foreseeable future, OpenEden Labs’s offering would offer the highest net and gross yield on that basis.
While the tokenised T-Bills market has seen several entrants with differing offerings, these are the key features of the OpenEden TBILL Vault which sets it apart from competitors:
Instant settlement on-chain: Interactions with the TBILL Vault are atomic. Subscription and redemption processes happen instantaneously in a DeFi-like transaction on-chain. By remaining aligned with how DeFi transactions happen, the TBILL Vault product offers familiarity and ease-of-use to DeFi-native investors.
Direct T-Bills exposure without intermediaries: The underlying assets of the TBILL Vault consist mainly of T-Bills that are purchased directly through a regulated and qualified broker. This approach offers holders of the TBILL tokens direct exposure to T-Bills, as opposed to ETFs. There are several benefits of having direct exposure to T-Bills. Investors would not incur additional charges like ETF management fees. There will also be no tracking error that may arise from ETFs. These additional costs from ETFs will reduce the net yield received by investors. Furthermore, direct T-Bills exposure means having access to the highly-liquid T-Bills secondary market, which has an average daily volume of $150 to $200 billion as compared to Bond ETFs which trades less than $400 million a day
Compliance-first structure: TBILL tokens are issued by a professional fund regulated by the BVI Financial Services Commission. Token holders’ contractual rights are documented in the Private Placement Memorandum and Subscription Agreement. Furthermore, there are independent service providers engaged by the fund such as Fund Administrator, Fund Auditor, Legal Counsels, Regulated Custodians and prime brokers. The underlying assets of the TBILL Vault are held via a bankruptcy-remote special purpose vehicle, with fully segregated accounts in qualified custodians which are regulated. Assets held in segregated accounts cannot be used by the custodian to pay its own debt or obligations by regulation, and it must keep those assets separate to protect client interests. The portfolio of T-Bills are managed by a regulated investment manager in Singapore. TBILL tokens are available to all accredited investors, including those based in the U.S through SEC Reg D 506c.
Highly transparent: Transparency is at the core of the TBILL Vault. The Vault smart contract has been formally audited by Verichains. On the off-chain side, daily portfolio reports from the T-Bills’ custodian, monthly attestations of the BVI fund’s (Token Issuer) balance sheet conducted by a regulated public accounting corporation and monthly NAV report by the Fund Administrator are all uploaded to the portal for investors to view. A Chainlink Proof-of-Reserves is also currently being integrated into the Vault to provide another reliable source of on-chain and off-chain audit of the Vault’s assets.
More information on the OpenEden TBILL Vault can be found at the documentation site