ChainCatcher news, Bitwise CEO Hunter Horsley posted on X that there are national governments inquiring about Bitcoin ETFs and considering shifting some investments from foreign government bonds to Bitcoin.

ChainCatcher news, according to CoinDesk, the MOVE index (Merrill Option Volatility Expectation) for U.S. Treasury market volatility has continued to rise since hitting a low of 82 points in mid-December, reaching 102.78 points on January 8. As the world's second-largest financial market, increased volatility in the Treasury market often signals a tightening financial environment, which may trigger risk aversion across various financial markets.Latest data shows that manufacturing performance has exceeded expectations, suggesting strong economic resilience and persistent inflationary pressures, driving U.S. Treasury yields higher across the board. Among them, the 30-year Treasury yield rose to 4.92% (the highest since November 23), while the 10-year yield climbed to 4.68% (the highest level since May).Since Trump won the election on November 5, the MOVE index had significantly dropped, leading to a broad rally in risk assets. However, this upward momentum began to weaken when the MOVE index hit its low in mid-December. On January 8, Bitcoin fell 5% to $96,900, and the S&P 500 dropped over 1%. Analysts point out that the bond market is currently dominating broader market trends, making it difficult for risk assets to regain upward momentum before the Treasury market stabilizes.

ChainCatcher news, 1confirmation founder Nick Tomaino posted on the X platform that we will likely soon see countries competing to adopt MicroStrategy's strategy:Issuing government bonds of different maturities (5-year, 7-year, 10-year, etc.)Using the bonds to purchase cryptocurrenciesRepaying loans on time according to the loan termAt the same time, he stated that the question is no longer whether countries will do this, but rather what kind of cryptocurrencies they will purchase, possibly starting with BTC, but the next could be ETH, and any sufficiently decentralized currency could participate. The government bond market is larger than the stock market.

ChainCatcher news, according to Jinshi reports, U.S. Senator Cynthia Lummis's previously proposed funding plan for Bitcoin purchases partially relies on the large gold heritage owned by the United States—these gold reserves were left over from the era when the dollar was pegged to precious metals, allowing dollar holders to exchange dollars for gold at a fixed price.Although the dollar has not been convertible to gold since the early 1970s, the Treasury and the Federal Reserve still hold about 8,100 tons of gold. The government values this gold at $42 per ounce, which is far below the current market price of $2,650.Cynthia Lummis hopes the Treasury can reassess this gold at current market prices and use the paper profits to fund Bitcoin purchases without raising taxes or issuing new national debt. However, critics point out that this operation is not a free lunch; it would require the Federal Reserve to cover the difference between the gold certificates held by the Treasury and the new valuation through a combination of printing money and asset sales.Monetary economist George Selgin argues that this operation amounts to a "backdoor loan" from the government, bypassing the regular appropriation process to avoid new debt and obscuring the truth. Lummis's bill relies heavily on gilded magic, and George Selgin said, "What better way to win public support than to make people believe this plan won't cost a dime?"

ChainCatcher news, according to Jinshi reports, the Ministry of Finance has decided to carry out support operations for government bond market making. The operation direction is to sell, with 1.26 billion yuan of the 2024 book-entry interest-bearing (16th issue) government bonds and 530 million yuan of the 2024 book-entry interest-bearing (19th issue) government bonds. The competitive bidding time is December 17.

ChainCatcher news, according to Coindesk, the UK Treasury stated in a statement on Thursday that the UK government will launch a pilot program to issue digital government bond instruments similar to bonds using distributed ledger technology.The Treasury stated: "The government will launch a pilot program to provide digital government bond instruments using distributed ledger technology (DLT) to demonstrate the government's commitment to innovation in the financial services sector." DLT is the underlying technology for crypto assets, where each node can store and update data. UK Treasury Economic Secretary Tulip Siddiq stated that the Labour Party will soon announce its plans in the cryptocurrency sector.Bloomberg cited unnamed sources as saying that the Labour Party is likely to continue following in the footsteps of the previous ruling Conservative Party by developing legislation for stablecoins and staking.

ChainCatcher news, according to Bloomberg, informed sources revealed that the UK plans to start issuing digital government bonds within the next two years. Chancellor of the Exchequer Rachel Reeves is expected to announce a trial issuance of digital bonds during her speech at Mansion House in the City of London on Thursday. Traditionally, the Chancellor uses this forum to announce policies that support the financial sector.The new Labour government is working to modernize the financial markets and is currently utilizing blockchain technology to "tokenize" government debt, hoping that this move will make government bond trading faster and cheaper.Amid the digital transformation, the UK government is undertaking a £297 billion ($382 billion) borrowing plan, the second-largest borrowing plan in history, with sales expected to remain high in the coming years. Informed sources indicated that legislation may need to be submitted to Parliament to proceed with blockchain-based sales. The UK Treasury declined to comment.

ChainCatcher news, Realize and Neovision Wealth Management have launched an investment fund that will acquire shares of exchange-traded funds (ETFs) focused on U.S. Treasury bills and tokenize them. The fund is named Realize T-Bills Fund and will acquire shares of BlackRock's low-cost iShares and State Street's SPDR ETFs.The two companies plan to scale the fund to $200 million. Realize will tokenize the fund units. Another report suggested a goal of expanding assets under management to $100 million within 12 months.

ChainCatcher news, Standard Chartered Bank's incubated RWA platform Libeara has partnered with FundBridge Capital to launch the Delta Wellington ultra-short-term government bond on-chain fund (also known as the ULTRA fund).Libeara CEO Aaron Gwak stated, "This new fund is based on the SGD Delta Fund, which became the first tokenized fund to receive a Moody's Aa rating, bringing an equivalent level of institutional credibility to dollar-denominated investments."Previous news, Standard Chartered Bank launched the blockchain department Libeara, aiming to tokenize Singapore dollar government bond funds.

ChainCatcher news, JPMorgan analysts indicate that the tokenized government bond market is growing, with tokenized U.S. Treasuries being favored as a yield alternative to stablecoins and potentially challenging the dominance of stablecoins.However, analysts point out that regulatory constraints and liquidity issues suggest that tokenized government bonds may only partially replace stablecoins. Analysts state that large stablecoin issuers like Tether (USDT) and Circle (USDC) do not share reserve yields with users, a practice that not only reduces their income but also classifies stablecoins as securities. Analysts note that this classification would subject them to strict regulatory oversight, which could limit their use as collateral in the cryptocurrency market.

ChainCatcher news, according to Coindesk, Bitwise announced on Friday the launch of the Bitwise Trendwise Bitcoin and Treasury Rotation Strategy ETF (BITC). This fund combines the Bitwise Bitcoin Strategy Optm Roll ETF (BITC), Bitwise Ethereum Strategy ETF (AETH), and Bitwise Bitcoin and Eth Eq Wgh Str ETF (BTOP).Bitwise stated in a press release that the spot Bitcoin and Ethereum ETFs launched earlier this year have made futures-based crypto funds less attractive for investors seeking long-term capital appreciation. With the new fund, asset managers can rotate between 100% exposure to crypto futures contracts and 100% exposure to U.S. Treasuries based on market trends, allowing for better management of crypto market volatility.Bitwise is converting its three futures-based ETFs into a single ETF, with the conversion expected to take place on December 3.

ChainCatcher message, Shen Yu (@bitfish1) posted on social media that with further interest rate cuts, a large-scale Defi arbitrage trading is expected to unfold, and the pattern of government bonds as the main source of Defi returns may be broken, with a reversal imminent.

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.

ChainCatcher news, according to Jin10, China's 10-year government bond has erased its gains, with the active bond 240004 currently yielding 2.1175%, having previously fallen to 2.10%.

ChainCatcher news, according to Cointelegraph, former U.S. President Trump mentioned in an interview with Fox that Bitcoin or "crypto checks" could be used to pay off the U.S. government's debt of up to $35 trillion and avoid an imminent debt crisis. "Who knows, maybe we will pay off $35 trillion of (national debt), give them a little crypto check, right? We will give them a bit of Bitcoin and wipe out our $35 trillion."

ChainCatcher news, Tether strategy, and VanEck advisor Gabor Gurbacs stated that the logic behind the Federal Reserve purchasing Bitcoin instead of U.S. Treasury bonds is based on the fundamental differences between the two assets: one can be printed infinitely, while the other cannot. This is essentially a hard asset acquisition strategy, similar to central banks' operations with gold. The Federal Reserve aims to diversify its asset holdings by shifting from easily printed Treasury bonds to Bitcoin, which has a fixed supply, thereby hedging against potential inflation and currency fluctuations. In fact, this is a hedge against itself, which most central banks currently achieve primarily by holding gold. Bitcoin is increasingly being incorporated into the hedge portfolios of central bank investments.

ChainCatcher news, according to CoinDesk, the crypto lending platform MakerDAO is planning to invest its reserves of $1 billion in tokenized U.S. Treasury products. Several industry participants, including BlackRock's BUIDL, Superstate, and Ondo Finance, have a positive attitude towards this.Carlos Domingo, CEO of Securitize, the issuance partner of BlackRock, stated, "We believe MakerDAO's move is very good, and we are excited to participate with BlackRock's BUIDL."It is reported that MakerDAO's plan signifies a significant adjustment to its reserve strategy, as the protocol has led the trend of real-world assets (RWA) in cryptocurrency, with its decentralized stablecoin portion supported by U.S. government bonds and notes held off-chain with a range of partners.

ChainCatcher news, according to a post by Bitcoin.com on the X platform, the total market capitalization of tokenized government bonds has now exceeded $1.5 billion. Tokenized government bonds and real-world asset (RWA) protocols experienced significant growth in 2024. Since April, there has been a surge in demand for government bonds, bonds, and cash equivalents, including tokenized U.S. government bonds, leading to a 35% growth in the RWA sector.The total value locked (TVL) of key player in the RWA DeFi space, @OndoFinance, increased from $221 million to $507 million, while BlackRock's BUIDL and @FTI_US's FOBXX reported growths of 65% and nearly 27%, respectively.