S&P Dow Jones Indices has tokenized its iBoxx U.S. Treasury Index on the Canton Network, making the leading fixed income benchmark available as a digital asset, signaling a shift to on-chain data infrastructure in traditional finance.
In an announcement Tuesday, S&P said the index was brought on-chain in collaboration with Kaiko, a provider of digital asset market data and infrastructure that supports the tokenization and on-chain distribution of the index.
The iBoxx US Treasuries Index is a widely used benchmark that tracks the performance of U.S. government bonds across a variety of maturities and serves as a reference point for institutional investors and fixed income products.
Tokenized indices are not investable products. Instead, it is designed for financial institutions building digital products, allowing them to integrate benchmark data, including prices and index levels, directly into blockchain systems.
S&P Dow Jones Indices continues to control who can access and use the gauge through permissions built into the token itself. Kaiko provides technology that enables index publishing and access on the blockchain.
The companies said this approach could be expanded to other indices as interest in blockchain-based financial systems grows. The goal is to make benchmark data easier to access and use, especially as the U.S. Treasury plays a larger role as collateral in digital financial markets.
Canton Network is a public blockchain focused on institutional use, with over 600 participating institutions and validators. It is backed by Goldman Sachs and Citadel.
Related: Moody’s brings credit ratings on-chain with Canton Network integration
U.S. Treasury leads on-chain movement
The choice to start with the iBoxx index is intentional. S&P Dow Jones Indices and Kaiko said U.S. Treasuries are becoming the “base layer” of the on-chain financial system, reflecting their growing role as collateral and important entry point for institutional investor activity.
By putting the index on-chain, financial institutions building blockchain-based products will have more direct access to widely used Treasury benchmarks without relying on traditional data feeds or licensing processes.
US government bonds account for the largest share of the $27 billion tokenized asset market. sauce: RWA.xyz
US Treasury products already dominate the tokenization market. According to industry data, more than $12.5 billion worth of U.S. Treasuries has been tokenized on-chain, more than any other asset class.
Related: BitGo expands Canton Coin services with trading and on-chain payments
