Resonate Announces Expansion in the RWA Space with Backed Finance Products
Exciting news in the world of RWAs! We are thrilled to announce our new offering of Backed products!
This will further widen the capabilities of Resonate by opening up another tokenizer option for those seeking to borrow against the future yield on their treasury bills. Backed offers a unique and different approach to the question of RWA tokenization, utilizing a less walled-garden approach that appeals strongly to those operating outside of North America.
The Backed RWA Assets
Backed presently supports and tokenizes four key assets:
- Backed IB01 $ Treasury Bond, 0–1yr ($bIB01)
$bIB01 is a tracker certificate issued as an ERC-20 token. bIB01 tracks the price of the iShares ($) US Treasury Bond 0–1yr UCITS ETF.
2. Backed IBTA $ Treasury Bond, 1–3yr ($bIBTA)
$bIBTA is a tracker certificate issued as an ERC-20 token. bIBTA tracks the price of the iShares ($) US Treasury Bond 1–3yr UCITS ETF.
3. Backed HIGH € High Yield Corp Bond (bHIGH)
$bHIGH is a tracker certificate issued as an ERC-20 token. bHIGH tracks the price of the iShares (€) EU High Yield Corp Bond UCITS ETF.
4. Backed CSPX Core S&P 500 (bCSPX)
$bCSPX is a tracker certificate issued as an ERC-20 token. bCSPX tracks the price of the iShares ($) US Core S&P 500 UCITS ETF.
The Strategy
We are introducing more options for tokenized exposure to fixed-income assets on Resonate, marking the next progression of a long-term strategy detailed in our whitepaper. These permissioned ERC-20 tokens operate by securely holding assets in off-chain custody, gaining increased backing as the RWAs that collateralize them reach maturity.
When depositing into Resonate, users receive an immediate payment for the specified period based on their principal (any supported token). This sum is then free to be used in any manner, generally as part of a larger trading strategy or system. Successful strategic bets will significantly boost returns of these RWA assets, while maintaining an extremely low-risk profile. In the event of unsuccessful speculation, users won’t incur a debt against their principal, as their fixed-income assets will autonomously repay the sum upon maturity.
The counterparty in this system will operate as a lender, leveraging the spread between the amount lent and the yield generated by bTokens. This ensures that the lender will profit at a predetermined rate, irrespective of the outcome.
We aim to offer institutional investors assurances, compliant self-custody, and desirable returns. Resonate goes beyond merely offering tokenized “real-world assets”; investors gain the potential returns of DeFi with the security of TradFi. Serving as a gateway between these two realms, Resonate presents a unique value proposition for institutional investors.
About the Teams
Backed
Backed bridges real-world assets on-chain. Backed issues on-chain tokens that track the value of real-world assets, such as stocks or ETFs. Tokens are freely transferable across wallets, are fully collateralized by the underlying asset, and are issued in compliance with the Swiss DLT act.
Backed’s tokens are not offered, sold or delivered within the United States, or for the account or benefit of U.S. Persons.
The Backed Assets bCSPX (ticker symbol: bCSPX) is a tracker certificate issued as an ERC-20 token, which tracks the price of the iShares Core S&P 500 UCITS ETF USD.
Backed Finance AG and its subsidiary Backed Assets GmbH are not affiliates of or licensed by BlackRock Inc, BlackRock Fund Advisors and any of its affiliates (“BlackRock”) or S&P Global and any of its affiliates (“S&P”), and neither BlackRock nor S&P are responsible in any way to bCSPX products.
The Backed Assets bIBTA, bIB01, and bHIGH (ticker symbols: bIBTA, bIB01, bHIGH) are tracker certificates issued as ERC-20 tokens, which track the price of the underlying iShares ETFs.
Backed Finance AG and its subsidiary Backed Assets GmbH are not affiliates of or licensed by BlackRock Inc, BlackRock Fund Advisors and any of its affiliates (“BlackRock”). BlackRock is not responsible in any way to bIBTA, bIB01, or bHIGH products.
Resonate
Resonate is a marketplace where users can lend their variable rate assets to receive fixed rates (or provide fixed-rates to obtain boosted variable rates). Through tokenizing positions with Revest’s Financial NFTs (FNFTs) engine, Resonate is able to offer this interest exchange with fully customizable liquid lockups and zero-slippage.
Resonate enables low-to-no risk asset managers to maintain their secure gains from US Treasuries while tapping into DeFi yields and assets without jeopardizing their initial principal. It empowers asset managers to leverage their existing fixed-income portfolios, unlock hidden value within these assets, and access digital assets in a compliant, principal-protected manner.
This groundbreaking solution is enabled by the unique valuation of short-duration fixed-income assets. Short-term fixed-duration assets typically lack strips, meaning they are purchased at a value lower than their face value and realize that face value upon maturity. Resonate facilitates the realization of this value at any point during the maturity process by lending against the unrealized value. This decouples interest from the underlying asset, allowing borrowers to deploy the borrowed capital into DeFi and digital asset strategies.