Today, DigiFT, a decentralised exchange (DEX) for digital assets, announced the launch of DigiFT U.S. Treasury Token (“DUST”). DUST is the first fully regulatory-compliant U.S. Treasury token issued on a public blockchain. Backed by a single U.S. Treasury note with a specific maturity date, DUST offers accredited and institutional investors an on-chain channel to invest in U.S. Treasuries, with the physical U.S. Treasuries custodised with a licensed broker-custodian in Singapore.
Unlike other tokenised treasuries, DUST provides a regulated, on-chain channel for investors to invest in U.S. Treasuries with a specific maturity date of 31 December 2023. Investors also enjoy the flexibility of investing in the regulatory-compliant security token offering with either fiat (U.S. Dollar (USD)) or stablecoins (USD Coin (USDC)), as well as a lower capital outlay with a minimum investment amount of 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 mechanisms,” said Henry Zhang, CEO, DigiFT.
With the tokenised treasury market surpassing USD 680 million in early August 2023, DUST marks DigiFT’s third flagship product bridging DeFi and RWAs through regulated solutions. DUST provides same day settlement for investments below USD 50,000, subject to liquidity.
“We believe that tokenisation of RWAs is poised to become the future of investing, and DUST will support the wider adoption of digital tokens with its compliant features. Given our unique position as a regulatory-compliant DEX, we are not only excited about the opportunities to bring more RWAs on-chain, but also to innovate and introduce new, compliant solutions for investors,” added Mr. Zhang.
The DUST token is issued by Red Cedar Digital Pte. Ltd., an affiliate of DigiFT, with YTM of 5.40% as of 3 August 2023.
Founded in 2020, DigiFT is the first and only DEX enrolled within the Monetary Authority of Singapore (MAS) FinTech Regulatory Sandbox. Since its launch, DigiFT has listed a tokenised corporate note issued by Diners Club (Singapore) that was fully subscribed at its initial offering, as well as a tokenised bond, which was backed by a Barclays 8% Perpetual Bond custodised with a licensed global financial institution. DigiFT also provides regulatory-compliant access to Matrixdock’s (a subsidiary of Matrixport) Short-term Treasury Bill Token (STBT), which has a total supply of over 122 million as of 9 August 2023 for accredited investors.
DigiFT is the first and only security token DEX enrolled within the Monetary Authority of Singapore (MAS) FinTech Regulatory Sandbox,built on the Ethereum public blockchain. DigiFT allows asset owners to issue blockchain-based security tokens and investors can trade with continuous liquidity via an Automatic Market Maker mechanism.
DigiFT’s founding team comprises executives who have held positions within the finance and fintech worlds at Goldman Sachs, UBS, Citibank, and Morgan Stanley, and possess deep blockchain technology knowledge, having successfully developed digital asset exchange and products in the past.