U.S. Treasury Bills

What are U.S. Treasury Bills

Treasury bills are short-term debt issued by the U.S. government, with maturities running from a few weeks to a year. Tokenizing them puts that exposure on-chain, where the token represents a claim on a reserve of bills and cash held off-chain by a regulated issuer.

Noon's exposure runs through USD+, a yield-bearing stablecoin issued by Dinari. Each token targets $1 and is backed 100% by short-term U.S. Treasuries and USD. The underlying position is WisdomTree's short-term Treasury ETF, held through Alpaca, a FINRA regulated broker.

Noon holds USD+ in a self-custodial MPC wallet. Yield is linked to short-term U.S. Treasury rates, net of fees and reserve costs, and is distributed through daily wallet-balance rebases.

When liquidity is required, Noon redeems USD+ directly through Dinari. Redemptions normally settle in USDC within 1 business day.

Noon Deployment Analysis: Summary

Figure 1. Deployment Analysis - U.S. Treasury Bills

Return generation mechanism

The U.S. government pays to borrow. Bills are sold below face value and pay out at par when they mature, and that gap is the yield. Because the maturities are short, the reserve rolls constantly, so the yield tracks current rates rather than staying locked into older ones.

That income accrues to the reserve and Dinari passes it through to holders with daily rebases. Your USD+ balance grows while the token stays at $1. Returns are variable and move with short-term Treasury rates, net of fees and reserve costs.

Documents

• Primer: U.S. Treasury Bill Primer

Note: as U.S. Treasury Bills were among Noon's launch strategies, there was no governance vote to permit deployment into this strategy.