Backed Finance, a company that tokenizes real-world assets, has recently announced the release of the very first tokenized security on Coinbase's Base blockchain, which operates as a layer two (L2) platform.

On October 6, the firm introduced bIB01 tokens to the decentralized finance (DeFi) industry. These tokens are designed to replicate the price dynamics of iShares' short-term Treasury bond ETF.

Backed's bIB01 crypto token, issued under Switzerland's tokenized securities law, is also touted as a blockchain-based alternative to BlackRock's short-term U.S. Treasuries exchange-traded fund (ETF) which offers an annual yield of 5.25%.

This issuance marks the first instance of a tokenized real-world asset being launched on the Base network. Friend.Tech, a well-known social tokenization platform, operates on the same network.

Tokenization of real-world assets (RWAs), which encompass converting traditional financial instruments like government bonds, private equity, and credit into tokenized form and placing them on blockchains, has emerged as a major trend in the cryptocurrency space this year.

According to a report by the Boston Consulting Group, the market for tokenized assets could reach $16 trillion by 2030.