Superstate Upgrades USTB Fund

Tokenization firm Superstate is enhancing its USTB fund, which tracks U.S. government securities, by introducing continuous pricing. This innovative feature dynamically updates the fund's net asset value, providing a first-of-its-kind experience for investors.

With continuous pricing, USTB holders will benefit from instant interest accrual, eliminating the delays typically seen in traditional market settlement cycles. Investors will begin to see returns immediately upon investment, rather than having to wait for the next business day's NAV update.

The USTB fund currently manages over $145 million in assets and offers a yield of 4.80% over a seven-day period. Ownership in the fund is represented by an ERC-20 token, USTB.

Superstate founder Robert Leshner emphasized the significance of this upgrade, stating, "This is the first time we are spending time talking about and upgrading the TradFi side of what we do." He envisions incorporating logic and principles from blockchain to enhance the traditional finance aspects of a tokenized fund.

Leshner also mentioned that continuous pricing sets the stage for future enhancements, such as atomic minting and redemptions, as well as nearly instantaneous conversions between USTB and USDC. He noted, "The really powerful second-order effect is actually not as obvious… Switching to real-time pricing under the hood will enable us to do real-time pricing on-chain."

While the service is currently primarily applicable to T-bills, which offer predictable returns, Leshner indicated this method may not apply to other more volatile tokenized assets. Superstate will interpolate data based on the portfolio's yield over specific intervals (e.g., hourly).

Leshner concluded that while this approach works for T-bills, other funds may require real-time market data to account for significant fluctuations, citing their second fund that trades bitcoin and bitcoin futures as an example.