DigiFT, a pioneer in facilitating on-chain transactions of real-world assets (RWA), has unveiled a groundbreaking development in the tokenization of these assets. The exchange has introduced U.S. Treasury Bill depository receipt (DR) tokens, marking a significant leap in offering investors enhanced protection and direct beneficial ownership of the underlying U.S. Treasury Bill.
Enhancing Legal Clarity and Ownership
Addressing the complexities involved in the tokenization of real-world assets, DigiFT has innovated a token issuance model that utilizes the depository receipt structure on-chain. This approach is designed to overcome the “challenge” inherent in RWA tokenization, where existing tokens are often “wrapped” in convoluted legal frameworks. DigiFT’s tokens, in contrast, aim to provide investors with a straightforward legal structure, ensuring direct beneficial interest in the underlying asset and facilitating seamless on-chain settlement.
Empowering Investors with Direct Ownership
Henry Zhang, the founder and CEO of DigiFT, emphasized the significance of the DR structure in addressing a critical pain point in the current RWA market. This model empowers investors with direct ownership of underlying assets and their returns, reinforcing DigiFT’s commitment to broadening the horizons of traditional financial assets within the Web3 space.
DigiFT U.S. Treasury Tokens (DRUST)
The inaugural offering under the DR structure, DigiFT U.S. Treasury Tokens (DRUST), is backed directly by AA+ rated, highly liquid U.S. Treasury bills. These tokens are poised to serve as an ideal solution for stablecoin issuers and Web3 product developers/managers seeking regulatory-compliant options for treasury and cash management.
Regulatory Milestones
In December, DigiFT achieved a significant milestone by obtaining the Capital Markets Services (CMS) license and being recognized as a Recognized Market Operator (RMO) by the Monetary Authority of Singapore (MAS). This recognition underscores DigiFT’s adherence to regulatory standards and its commitment to innovation in the financial and Web3 domains.
DigiFT’s introduction of U.S. Treasury Bill DR tokens represents a transformative advancement in the tokenization of real-world assets, offering unprecedented levels of investor protection and legal clarity. As DigiFT continues to develop and expand its offerings, it sets a new standard for the integration of traditional financial assets with the burgeoning Web3 ecosystem.
