Creating More Efficient Markets with Tokenized Assets

This week, FalconX executed the first trade using the USTB token, Superstate’s short-term treasury fund, as collateral. This trade, executed between FalconX and a private fund manager, marks a pivotal step forward in the future of tokenized assets. Below, Robert and I share our thoughts on a recent use case and how tokenization is making markets even more efficient.  

From ICOs to STOs to NFTs, it's easy to get lost in the many acronyms of crypto. However, we would argue that the latest 3-letter trend - RWA (Real World Assets) - is far from yet another buzzword. In fact, RWAs are at the forefront of transforming traditional debt and equity markets through blockchain technology. They provide a digital representation of real world assets, making transactions simple and efficient. With the valuation of outstanding stablecoins already in the tens of billions (see total stablecoin supply), many market observers are anticipating that tokenizing RWAs will revolutionize financial markets and scale into a multi-trillion-dollar opportunity (see 21 shares tokenization report). One asset class ripe for innovation is the credit market, which today is notoriously inefficient and expensive to transact in. 

At FalconX, we continue to explore the programmability of smart contracts as they offer numerous advantages, including automated asset transfers and settlements, and a reduction in fraud. Earlier this year we announced our work with Blackrock and accepting BUIDL as collateral. That step, along with our trade using USTB as collateral, are early signs that tokenization of treasury funds is creating value to market participants by blending the stability and liquidity of traditional markets with the agility and innovation possible with blockchain technology. 

At Superstate, we view our introduction of USTB as an immediate demonstration of the value of tokenization. By using USTB as collateral, fund managers can now earn a yield on their on-chain cash holdings, providing an alternative to stablecoins. The party posting the collateral in the trade is able to earn interest on the USTB, in addition to any potential returns from the trade itself. This contrasts with using USDC or fiat as collateral, where often no interest is earned. We're proud to be at the forefront of this revolution, helping investors optimize their capital efficiency and returns. 

Together, we stand at the forefront of a new era in finance, focusing on building and turning what may seem like jargon into real value. Today's success is just the beginning, and we're excited to lead the charge towards a future where tokenized assets unlock new opportunities for efficiency, transparency, and growth in financial markets.

About FalconX: 

FalconX is a leading digital assets prime brokerage for the world's top institutions and the first CFTC registered cryptocurrency swap dealer. We provide the most comprehensive access to global digital asset liquidity. Our 24/7 dedicated team for account, operational and trading needs enables investors to navigate markets around the clock.

The company is backed by investors including Accel, Adams Street Partners, Altimeter Capital, American Express Ventures, B Capital, GIC, Lightspeed Venture Partners, Sapphire Ventures, Thoma Bravo, Tiger Global Management and Wellington Management. FalconX has offices in Silicon Valley, New York, London, Hong Kong, Bengaluru, Singapore, and Valletta. For more information visit or follow FalconX on X and LinkedIn.

About Superstate:

Superstate is an asset management firm modernizing the infrastructure of investment funds for crypto native institutional investors. We offer investment products that benefit from the speed, programmability, and compliance advantages of blockchain tokenization. The Firm launched their first tokenized fund, USTB, in February. USTB currently holds over $100 million in AUM. Learn more at

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This material is for informational purposes only and is only intended for sophisticated or institutional investors. This material is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of FalconX or any of its affiliates. Any information contained in this material is not and should not be regarded as investment research, debt research, or derivatives research for the purposes of the rules of the CFTC or any other relevant regulatory body. Prior to entering into any proposed transaction, recipients should determine, in consultation with their own investment, legal, tax, regulatory and accounting advisors, the economic risks and merits, as well as the legal, tax, regulatory and accounting characteristics and consequences of the transaction. This material does not constitute investment advice. To the extent permitted by law, FalconX does not accept any liability arising from the use of this communication. This material may contain information regarding structured products which involve over the counter derivatives. Pursuant to the Dodd-Frank Act, over the counter derivatives are only permitted to be traded by “eligible contract participants” (“ECP”s) as defined under Section 1a(18) of the CEA (7 U.S.C. § 1a(18)). Do not invest in a structured product unless you are an ECP as relevant and fully understand and are willing to assume the risks associated with the product. Solios, Inc. is registered as a federal money services business with FinCEN. FalconX Bravo, Inc. is provisionally registered with the U.S. Commodities Futures Trading Commission (CFTC) as a swap dealer. FalconX Limited is a registered Class 3 VFA service provider under the Virtual Financial Assets Act of 2018 with the Malta Financial Services Authority. FalconX Limited, FalconX Bravo, Inc., nor Solios, Inc. are not registered with the Securities & Exchange Commission or the Financial Industry Regulatory Authority. FalconX Foxtrot Pte Ltd and FalconX Golf Pte. Ltd. are not regulated by the Monetary Authority of Singapore.

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