DigiFT Launches US Treasury-Backed Real-World Asset Tokens

DigiFT, a Singapore-based on-chain real-world asset (RWA) exchange, launches new tokens backed by US Treasuries. Structured as depository receipts, the tokens provide direct beneficial ownership and legal returns on underlying AA+ rated short-term bonds. Compared to existing wrapped tokens, DigiFT's depository receipt structure offers a simpler legal framework and regulatory compliance, targeting stablecoin issuers, Web3 developers, and institutional investors.

DigiFT Introduces New Real-World Asset Tokens Based on US Treasuries

Singapore-based on-chain real-world asset (RWA) exchange DigiFT has announced the launch of its latest product, tokens based on US Treasuries. This move signifies a significant development in the tokenization of traditional financial instruments.

Depository Receipt Structure

DigiFT's new product adopts the structure of depository receipts, which are certificates representing shares of a company held outside its local stock market. This arrangement enables DigiFT to offer users direct beneficial ownership of highly-rated and short-term Treasury bonds, providing a legal stream of returns on the underlying securities.

Addressing Legal Complexity

Traditional RWA tokens often face challenges related to legal complexity due to their structure as wrapped tokens tied to special purpose vehicles or derivative instruments. DigiFT's depository receipt approach addresses this issue by providing a simplified legal framework that is easier for investors to comprehend.

Suitability for Various Actors

DigiFT emphasizes the suitability of its new RWA token for various market participants. Stablecoin issuers and Web3 product developers seeking regulatory-compliant treasury solutions can leverage the new product. Accredited and institutional investors can also access the tokens through authorized self-custodial wallets using fiat currency or stablecoins.

Regulatory Compliance

DigiFT's operations are authorized by the Monetary Authority of Singapore (MAS). The company holds a capital markets services license and is recognized as a market operator. This regulatory oversight ensures the compliance and legitimacy of DigiFT's offerings.

Growing Interest in RWA Tokens

The market capitalization of RWA tokens has witnessed a notable increase, rising by 15.2% to $6.5 billion in the past 24 hours. This surge in value indicates growing interest in the asset class. Ondo, the RWA token with the largest market cap, has experienced a significant 93% increase in value within the last seven days.

Tokenization of Real-World Assets

Industry experts anticipate that the tokenization of real-world assets will become a prominent theme in the cryptocurrency landscape for 2024. Integrating off-chain assets into blockchain networks enhances transparency and efficiency, according to Binance Research. This development opens up new possibilities for investors to access a broader range of financial instruments.

Disclaimer

It is crucial to note that The Block, the source of this article, operates as an independent media outlet. While Foresight Ventures is a majority investor in The Block, the publication maintains its independence in providing impartial and impactful industry coverage. Any information presented in this article is intended for informational purposes only and should not be construed as financial or investment advice.