Jesse Knutson is the head of operations at Bitfinex Securities.
Access to the U.S. Dollar is common in developed economies. In developed economies, the USD is a given.
Compare this with many emerging economies where the U.S. Dollar is essential to businesses and to individuals in order to protect their wealth. This can be difficult due to red tape and uneconomic exchange rates. In some countries, there are also regulatory issues.
It doesn’t matter where in the world you live; most businesses and individuals share the same goals: to be financially secure, grow wealth, and create a solid financial footing for the next generation. In the global south, achieving these goals is difficult if currency fluctuations or high inflation are present. Savers will look for assets that are relatively stable, such as the U.S. Dollar. Without access to the dollar, it can feel like building on quicksand – no matter how hard you try, the foundation keeps shifting.
Until relatively recently there were really only two ways to get a dollar. Either through traditional banks or on the black market. There are bureaucracy issues, fees and a limited supply with traditional banking institutions. On the other hand, there is a black market that exposes you to risks such as wildly fluctuating exchange rates, legal implications and bureaucratic hassles.
This was all turned upside-down by the advent of cryptocurrency. The Stablecoins allow anyone who has an internet connection to have almost immediate access to dollars with no transaction costs. This has proved to be a lifeline for those fighting double—or even triple-digit inflation on a daily basis.
Castle Island Ventures published a report that revealed 69% of cryptocurrency users from Brazil, Nigeria and India had converted their currency to stablecoins. The users said that they preferred using stablecoins over other traditional ways to access the U.S. dollars because it is more efficient, has a lower chance of being interfered with by the government and offers the opportunity to earn a yield.
Stablecoins are generally well-performing, but more advanced financial products using blockchain technology that offer the option to trade in dollars and have favorable yields and predictability will soon be available.
The popularity of tokenized funds which offer exposure to U.S. Treasury T-bills is increasing. It seems that this asset class, which is small but rapidly growing, has momentum. Tokenized U.S. Treasury bonds have increased in value by 415 percent since 2024, making them the second-largest real-world crypto asset on RWA.xyz.
Much of this growth has been driven by the two biggest funds – Hashnote’s USYC and BlackRock’s BUIDL. But both funds are restricted by eligibility rules that keep out the majority who would benefit most. USYC only allows investors with a $200,000 income to invest, and BUIDL requires that you have $100,000 to start.
It is clear that this is out of reach for the majority who are constantly fighting emerging market inflation. Tokenization is a way to change the world of finance, and to make global investment more accessible.
Tokenized U.S. Treasury Bills are for all investors. Retail investors with small amounts to invest have the most to gain from parking their spare capital in a product that provides exposure to U.S. government debt – arguably the safest asset in the world – and yield on that investment.
NexBridge proves that this is achievable. NexBridge recently released USTBL, a tokenized version of T-bills based on Bitcoin technology. With a minimum ticket size of just 1 USDt, oversight from El Salvador’s national digital asset commission, and transfer restrictions enforced on the Liquid Network, USTBL strikes a balance between inclusion, regulatory compliance, and long-term sustainability.
Democratizing access to finance is at the heart of blockchain’s promise. As tokenized funds gain prominence, we must ensure they remain a tool for empowerment—breaking down barriers, leveling the playing field, and unlocking opportunities for individuals wherever they are in the world.
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