Why Government Bonds Are Ripe for Tokenization

Tokenization takes a traditionally issued government security and migrates it onto a programmable digital ledger. Instead of settling through a chain of intermediaries-custodians, clearing systems, and central securities depositories-ownership is recorded natively on blockchain rails where transfers occur atomically.

Tokenization does not change the credit risk of the underlying government-but it radically upgrades how the financial system interacts with it.

This represents the same shift email brought to communication: the message (the underlying security) remained the same, but the rails made the entire experience faster, cheaper, more reliable, and more composable.

The result is a sovereign obligation that is:

• Programmable
• Instantly transferable (T+0)
• Globally interoperable
• Auditable in real time
• More accessible to a broader investor base