Morgan Krupetsky, vice president of on-chain finance at Ava Labs, said ULTRA — Avalanche’s tokenized U.S. Treasury fund — springs from how people already use digital dollars.
ULTRA takes traditional U.S. Treasury securities and issues them on blockchain so they can trade and settle digitally. Tokenization of Treasuries simply means converting government bonds into digital tokens, making them easier to move, pledge, and use in on-chain finance.
“To date, the quintessential tokenized asset or the quintessential RWA has been stablecoins,” Krupetsky said in an interview with TheStreet Roundtable. She cited “about $280 billion in collective stablecoin market cap on chain today,” adding that asset managers saw a way to meet that demand with money market exposure.
“You’re still holding onto an asset that is valued at a dollar, but at least you’re able to kind of yield on that asset,” she said. “You could kind of almost think about it as like a digital savings account.”
A policy shift has helped. A “really conducive regulatory landscape as well as really the passing of the GENIUS Act created a green light for a lot of enterprises, institutions and other types of companies to contemplate digital asset and stablecoin strategies,” she said, noting “a pickup in the sense of urgency and even in some cases, a sense of FOMO.”
Related: What is tokenization? Explained
Proof points: SkyBridge and Grove
Recent institutional moves on Avalanche echo the strategy behind ULTRA’s push into tokenized Treasuries.
Alp Gasimov pointed to SkyBridge recently deploying roughly 300 million dollars in tokenized assets on Avalanche, asking why a hedge fund would move funds on-chain and what holds others back.
Krupetsky answered broadly, saying asset managers are “much more able to and inclined to deploy and tokenize assets on public networks,” often using permissioned applications atop permissionless rails.
The draw, she said, is reducing operational friction so managers can lower investment minimums and “reach a potentially wider investor base,” while exploring DeFi integrations that create “greater utility and asset mobility” — including the ability to pledge positions as collateral.
Gasimov also cited Grove Finance deploying $250 million in real world assets on Avalanche, asking why they continued expansion on Avalanche rather than Ethereum.
Krupetsky said tokenization is “part of our DNA,” adding that Avalanche couples a public liquidity hub (the C-Chain) with “purpose-built layer one networks natively interoperable,” which institutions are increasingly exploring and deploying.
[SRC] https://finance.yahoo.com/news/stablecoins-digital-savings-accounts-says-223406746.html
