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British Virgin Islands emerges as major hub for tokenized US Treasuries
A Destination Digital report estimates BVI entities accounted for about $1.5 billion of the global $14.98 billion tokenized US Treasuries market as of June 1.
Crypto firms including Kraken, Bitstamp, 1inch and Bitfinex have set up shop in the British Virgin Islands, where local rules for virtual asset service providers have attracted issuers tied to tokenized financial products, according to Cointelegraph.
The outlet cites BVI Finance data saying more than $1 out of every $10 of the world’s tokenized US Treasuries is issued by a company incorporated in the territory. In BVI Finance’s June Destination Digital report, BVI entities are estimated to have represented about $1.5 billion of a $14.98 billion global market for tokenized US Treasuries as of June 1.
Cointelegraph also highlights the territory’s broader digital asset footprint, including a stablecoin market cap of about $1.2 billion held in BVI-linked addresses and roughly 28,000 stablecoin asset holders. It adds that more than 25 VASPs have been approved under the BVI’s VASP regime.
The report notes that the role of the islands can be nuanced because many crypto projects choose offshore incorporation for legal structuring rather than relocating operations. Cointelegraph quotes Andrew Jowett of Appleby (BVI) Ltd saying clients typically compare multiple jurisdictions such as the Cayman Islands while researching BVI corporate structures.