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Singapore-Based DigiFT Launches Regulatory-Compliant US Treasury Token
DigiFT, Singapore-based DEX, launched the first fully-regulated on-chain US Treasury token, DUST.
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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.
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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.
Do you think the tokenized treasuries market will continue growing rapidly over the next decade? Let us know in the comments below.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
