Investing
Singapore-Based DigiFT Launches Regulatory-Compliant US Treasury Token
Published:
Last Updated:
Singapore-based decentralized exchange DigiFT rolled out a regulatory-compliant US Treasury token on Thursday, backed by a single Treasury note with a specific expiry date of December 31, 2023. The new product offers investors a way to invest in a blockchain-based Treasury token, bridging the gap between decentralized and traditional finance (TradFi).
The First Fully Regulated US Treasury Token Issued on a Blockchain
DigiFT, a digital asset decentralized exchange (DEX) based in Singapore, launched DigiFT US Treasury Token (DUST) – “the first fully regulatory-compliant U.S. Treasury token issued on a public blockchain.”
According to the press release, DUST is backed by a single US Treasury note with a particular maturity date. The newly-launched asset provides licensed and institutional investors with an on-chain product that allows them to invest in US Treasuries. The report adds that the physical US Treasuries are kept in custody with a licensed broker-custodian in Singapore.
In contrast to tokenized Treasury bills, DUST offers a regulated, blockchain-based channel for investors to buy US Treasuries, which are set to expire on December 31, 2023. In addition, investors can invest in the token with the US dollar or the USDC stablecoin. The minimum investment amount for DUST is 1 USD/USDC.
“The launch of DigiFT U.S. Treasury Token represents our commitment to bring the best of both decentralised finance (DeFi) and traditional yield to investors. As the first fully regulatory-compliant U.S. Treasury Token offered on a DEX, DUST will enable us to broaden pathways for investors to explore tokenised real-world assets (“RWAs”) on-chain with full transparency, backed by institutional grade risk management mecha nisms.”
– said Henry Zhang, CEO of DigiFT.
Tokenized Treasury Product Tokens Surpass $640M in Total Value
The rollout of DUST represents DigiFT’s third product aimed at bridging decentralized finance (DeFi) and real-world assets (RWAs) via regulated products. The DEX noted in the press release that the new security token also offers same-day settlement for those who invest less than $50,000.
From a broader perspective, DUST’s market debut underscores the ongoing interest in tokenized Treasury securities. According to real-world asset data firm RWA.xyz, the market value of blockchain-based investment solutions that wrap T-Bills, bonds, and money market funds into a form of a token surpassed $640 million.
Last week, blockchain company Ondo Finance introduced the USD Yield, the first tokenized bond backed by Treasury bills and bank deposits. The product is available to non-US retail and institutional investors.
This article originally appeared on The Tokenist
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
