00:00tokenized treasuries are one of our crypto's strongest real world asset stories they bring
00:07treasury yield on chain they make cash like assets programmable and also give crypto native users
00:14a way to park capital without fully leaving digital asset rails right so there's just one
00:21small detail that a lot of people and analysts miss and uh this is uh kind of uh where you're
00:28looking at 24 7 on chain liquidity but it's actually not the same as uh 24 7 redemption
00:35right so a token may move uh between wallets instantly that does not mean that the issuer
00:41can instantly convert it back into cash or stable coins under all conditions and that gap is what
00:48we're calling the redemption friction when we look at our black rocks uh buidl which shows this issue
00:56clearly one redemption path runs through securitize with a 250k minimum and a daily cutoff another path
01:04uses circle's instant usdc liquidity pool but that pool is finite and must be replenished through
01:11the slower native route on those all usg offers strong instant redemption but within the published
01:21capacity ceiling and uh the usdy has now kind of a low 500 minimum but the token may not become
01:31transferable for 40 to 50 days after that deposit franklin templeton's um benji b e n j i actually
01:41offers a low minimums and predictable daily processing but not the same crypto native instant redemption profile
01:49right so the point is not that these projects or products are bad the point is that yield and tvl
01:57are
01:57not enough so investors should always be asking questions like how fast does redemption actually
02:02pay out what is the minimum redemption size also you need to be thinking about are the fees clearly
02:08disclosed and is instant redemption guaranteed or capacity is limited and also what happens if the
02:16instant pool is actually exhausted so tokenized treasuries are becoming serious institutional
02:22infrastructure that means that the exit path actually matters much as the yield itself and
02:29that's why you need to be paying attention to the fact that these tokenized treasury funds that category
02:35itself has crossed over 7 billion in on-chain assets in 2026 right so nearly every product in it
02:43uh markets itself on some version of 24 7 instant liquidity but that phrase itself describes the
02:51blockchain settlement layer not the actual mechanics of converting a token back into cash and that gap
02:58between uh the two is large uh structural and almost never disclosed in the marketing copy so that's why
03:06you know if you want to really kind of see the mechanics of all of this what we've done is
03:10to create a
03:11proprietary i mean we actually have a redemption mechanism a snapshot for uh june uh 2026 and uh you
03:18can kind of see the actual redemption path uh the minimums right so the guaranteed or kept uh you know
03:25kind of uh sums and also you can now check out the redemption friction index which is a proprietary tool
03:32where you can score the product uh use the comparison board the same issue split you can uh you know
03:39ask different questions like how quickly does a project actually pay out uh on a standard redemption
03:45request or what is the minimum redemption size relative to minimum investment for the standard non-premium
03:51path or things like is the redemption fee structure if any clearly disclosed and reasonable relative to
03:57the category itself and also it's the advertised redemption speed guaranteed up to a clearly stated capacity or is it
04:05best effort with no disclose the ceiling or fallback
04:08and uh if you rank those you use the proprietary tool for free and you'll be able to see uh
04:15why that gap
04:16matters as much as that category of getting yield and as it continues to grow so check it out the
04:24link is in the
04:25description to the full guide with all the facts and data and you can use the the tool to uh
04:30compare these different
04:31products and also make sure you follow us on all our socials and like share subscribe turn on the notifications
04:37make sure you're using the right cryptocurrency exchanges that give you the best um privacy sometimes the
04:44best uh fees discounts rebates bonuses all the links will be in the description for the platforms that
04:51we recommend and i'll see you guys in the next videos peace y'all peace
04:55you
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