Kaiko Research: Fed rate cuts unlikely to limit appeal of tokenized Treasuries

Odaily Odaily News Kaiko Research released a report saying that the Fed's interest rate cuts are unlikely to limit the appeal of tokenized treasuries. BlackRock's on-chain tokenized fund BUIDL (standing for BlackRock USD Institutional Digital Liquidity Fund) is one of many funds launched in the past 18 months, providing investment opportunities in traditional debt instruments such as U.S. Treasuries. It quickly became the largest on-chain fund in terms of asset management scale (AUM). The fund was launched in partnership with Securitize in March 2024 and has attracted more than $520 million in inflows so far. In addition, Ethereum's gas fees recently fell to a five-year low, driven mainly by increased Layer 2 activity and the Dencun upgrade in March, which reduced Layer 2 transaction fees. This fee reduction has an impact on ETH, as lower fees mean less ETH is burned, thereby increasing the supply of tokens. As a result, the total supply of Ethereum has continued to rise since April. Despite the existence of demand drivers such as spot ETH ETFs, this growing supply may curb potential price increases in the short term.