Backed Finance, a company that tokenizes real-world assets, has successfully launched the first tokenized security on Coinbase's Base, an L2 blockchain. The firm has released bIB01 tokens into the decentralized finance (defi) market, which reflect the price movements of the Ishares short-term Treasury bond ETF.

The team at Backed Finance has reported that they've effectively introduced tokenized real-world assets on the Base blockchain platform. Termed as "b tokens" or Backed Tokens, these are ERC20 tokens symbolizing ownership in structured financial products. Each of these tokens stands for a unit of a fully backed tracker certificate, shadowing the market value of a distinct security, and is completely underpinned by that asset.

On October 6, 2023, the team unveiled: "Backed introduced the inaugural tokenized security on Base - bIB01, reflecting a short-term U.S. treasury bond ETF. Base, powered by Coinbase, presents a cost-efficient, developer-friendly environment for onchain developments."

While U.S. users can't acquire bIB01 tokens, they do offer eligible cryptocurrency enthusiasts a U.S.-dollar-pegged, rule-abiding government bond from the U.S. Treasury. Backed emphasizes that these tokens inherit the advantages of blockchain tech. Giorgio Giuliani, the product chief at Backed, expressed his eagerness about Base's promise to cater to developers.

Although b tokens remain off-limits for U.S. investors, those interested are required to comply with strict KYC and AML guidelines. Backed's initiative isn't solitary; Truefi is exploring with its own tokenized T-bills. As blockchain melds with traditional finance, entities like Ondo, Flux, and Pendle are also stepping up, reinforcing the synergy between tangible assets and defi platforms.