Archax has adopted Chainlink Data Streams to support lending and collateral uses for GOVY, its tokenised US Treasury bill product. Access remains limited to eligible institutional investors.
Archax has chosen Chainlink Data Streams to provide pricing data for GOVY, its tokenised US Treasury bill product. According to the company’s October 19 announcement, the data will supply valuations needed for banks, asset managers and DeFi applications to use GOVY in lending, collateral and treasury management.
The integration aims to make it easier to borrow against Treasury holdings. Current valuations help an application calculate borrowing capacity and loan-to-value ratios. Archax also says institutions can build workflows that monitor positions, rebalance collateral or respond to predefined risk thresholds.
“Institutions need more than a digital representation of an asset.”
How are GOVY’s underlying bills held?
GOVY is not a newly announced token. In its July 7 product explanation, Archax described a structure providing direct, legally enforceable rights to short-dated US Treasury bills. Under the company’s description, investors receive beneficial ownership of a bill held in custody rather than a fund share or a special-purpose vehicle note. Custody is provided through Archax, with Northern Trust holding the underlying securities.
Archax says GOVY is backed one-to-one by Treasury bills and that each maturing bill is automatically replaced with an equivalent short-dated security. Holders therefore do not have to submit reinvestment instructions at every maturity. The company describes the product as designed to align with High-Quality Liquid Assets Level 1 principles; today’s announcement contains no ruling that it will receive identical regulatory treatment in every jurisdiction.
GOVY can be transferred between eligible, whitelisted wallets. Subscriptions and redemptions using supported stablecoins are offered around the clock throughout the year. The July document also describes fiat access and a “Breaker” function through which a holder can take direct delivery of the token representing the underlying bill. Archax limits the product to institutional and professional investors.
Pricing data serves a separate role from custody
Chainlink Data Streams is an oracle service through which applications can request data such as prices and market status. It does not take over custody or the replacement of maturing bills. A current price can, for example, let an application evaluate its preset risk rules when collateral value falls.
Lending terms remain unspecified. The Archax announcement names no particular lending venue accepting GOVY and gives no loan-to-value ratio, integration transaction volume or GOVY pricing update frequency.
The company says the data can also inform margin requirements and collateral eligibility, as well as cash, liquidity and yield-management applications operating outside conventional market hours.
For an explanation of how the data reaches an application, the 2:44–3:44 section of Chainlink’s October 31, 2024 technical presentation covers requesting a report from data providers and verifying it onchain. Raoul Schipper’s SmartCon 2024 talk is dated background on the infrastructure, rather than a presentation of today’s Archax integration.
Archax’s official October 19 X post announces its selection of Data Streams for GOVY.
