Libeara and FundBridge Capital Launch the Delta Wellington Ultra Short Treasury On-Chain Fund
In a groundbreaking move for the financial and blockchain sectors, Libeara has announced a strategic collaboration with FundBridge Capital to launch the Delta Wellington Ultra Short Treasury On-Chain Fund, commonly referred to as the ULTRA Fund. This innovative initiative aims to revolutionize the way investors engage with treasury assets by leveraging the power of tokenization and blockchain technology.
Who is Libeara?
Libeara is a pioneering platform specializing in the tokenization of real-world assets (RWA). Backed by SC Ventures, the venture building and fintech investment arm of Standard Chartered, Libeara is at the forefront of integrating traditional finance with the burgeoning world of digital assets. The company’s mission is to enhance asset mobility and accessibility through innovative solutions that cater to the evolving needs of investors in the digital landscape.
FundBridge Capital: A Trusted Partner
FundBridge Capital is a well-established platform provider regulated by the Monetary Authority of Singapore (MAS). It specializes in offering services to fund managers, making it a natural partner for Libeara in this ambitious project. The collaboration aims to create a fund structure that not only meets regulatory standards but also provides a seamless experience for investors.
The Role of Wellington Management
To further bolster the ULTRA Fund’s credibility and operational efficiency, Wellington Management Singapore Pte. Ltd. will serve as the sub-manager. Wellington is renowned for its market-leading asset management capabilities, and its involvement ensures that the ULTRA Fund will benefit from top-tier investment strategies and management practices.
The Delta Master Trust Structure
The ULTRA Fund is established under the Delta Master Trust structure, which was set up by FundBridge. This structure is integrated with Libeara’s institutional-grade Delta platform, designed to facilitate the subscription, issuance, transfer, and redemption of tokenized units in the ULTRA Fund. This integration is crucial for enhancing the operational efficiency of the fund, allowing for a more streamlined investment process.
Accessibility and Technology
Investors will have the option to access the ULTRA Fund via USDC and fiat currencies, with initial deployment on the Ethereum Mainnet. The use of distributed ledger technology (DLT) ensures a secure and transparent investment experience, enhancing auditability and efficiency in subscription, redemption, and transfer processes. Furthermore, the tokenized units are set to expand to other blockchain networks, including Arbitrum, Avalanche, and Solana, broadening accessibility for a diverse range of investors.
A Significant Step Forward
Aaron Gwak, Founder and CEO of Libeara, expressed enthusiasm about the partnership, stating, “Our partnership with FundBridge Capital on the ULTRA Fund marks a significant step forward in expanding our tokenization ecosystem.” He emphasized that this fund mirrors the success of the SGD Delta Fund, which was the first tokenized fund to receive an Aa rating from Moody’s, thereby bringing institutional credibility to USD-denominated investments.
Gwak also highlighted the transformative potential of tokenization in enhancing asset mobility. Investors can now interact with their investments in innovative ways, such as using tokenized fund units as collateral. This flexibility is made possible through blockchain and smart contract technology, which automates complex processes like collateralization and ensures efficient ownership transfers.
Positive Reception from the Web3 Community
The ULTRA Fund has garnered significant interest from the Web3 community, with early engagement from stablecoin issuers, exchanges, and decentralized autonomous organizations (DAOs). Notable participants include Mountain Protocol, Drift, and Ondo Finance, the latter of which will provide technology for intraday redemptions to support the tokenized units.
Martin Carrica, CEO and Co-Founder of Mountain Protocol, remarked, “By participating in the Delta Wellington Ultra Short Treasury On-Chain Fund, we gain exposure to a fully on-chain short-term treasury solution that aligns with our ultra-safe investment mandate and enhances our transparency to users.”
A Milestone in Tokenization
This partnership signifies a pivotal moment in the adoption of tokenization within traditional financial markets. It showcases the transformative power of blockchain technology in enhancing operational efficiency and delivering a superior experience for investors. Mark Garabedian, Director of Digital Assets and Tokenization for Wellington Management, stated, “Tokenization represents a new frontier in asset management, and we are excited to continue the journey by collaborating with Libeara, FundBridge, and Standard Chartered Bank.”
Commitment to Innovation
Margaret Harwood-Jones, Standard Chartered’s Global Head of Financing and Securities Services, reaffirmed the bank’s commitment to supporting clients in the digital asset ecosystem. She noted, “By collaborating with Libeara and our other SC Venture companies, we aim to foster innovation and growth across the digital asset landscape.”
Conclusion
The launch of the Delta Wellington Ultra Short Treasury On-Chain Fund marks a significant advancement in the integration of traditional finance with blockchain technology. By combining the strengths of Libeara, FundBridge Capital, and Wellington Management, this initiative not only enhances investment opportunities but also sets a precedent for future collaborations in the digital asset space. As the financial landscape continues to evolve, the ULTRA Fund stands as a testament to the potential of tokenization in reshaping how investors interact with their assets.