Kaiko: Interest rate cuts are unlikely to limit the appeal of tokenized government bonds

ChainCatcher message, Kaiko released a report stating that interest rate cuts are unlikely to limit the appeal of tokenized government bonds. BlackRock's on-chain tokenized fund BUIDL provides investment in traditional debt instruments such as U.S. Treasury bonds, and BUIDL has quickly become the largest on-chain fund by assets under management (AUM). The fund was launched in March 2024 in partnership with Securitize and has attracted over $520 million in inflows to date.

If real interest rates remain stable, the potential stimulative effect of the Federal Reserve's interest rate cuts may be weaker than expected. In this scenario, U.S. Treasury bonds may still be attractive compared to risk assets, as investors may prefer liquidity and safety over risk.