DigiFT marks a significant milestone as the inaugural regulated platform for blockchain-based real-world assets, unveiling U.S. Treasury Bill depository receipt tokens. This innovation stands as a testament to blending the stability of traditional financial instruments with the cutting-edge technology of blockchain, ensuring direct beneficial ownership of the underlying U.S. Treasury Bills for investors.
Historically, depositary receipts have served as a bridge for investors to engage with foreign securities, starting with J.P. Morgan’s establishment of the first American Depositary Receipt in the late 1920s. This concept expanded globally in the 1990s, further solidifying its importance in international finance.
DigiFT’s introduction of depository receipt (DR) tokens into the blockchain ecosystem tackles a vital concern in the tokenization of real-world assets (RWAs): the need for a solid legal framework that not only legitimizes but also simplifies the representation of token holders’ interests in underlying assets. Traditional RWA tokens, often wrapped and linked to complex legal structures, obscure investors’ direct claims on the assets, presenting a challenge in understanding and asserting legal rights.
Contrastingly, DigiFT’s DR tokens streamline this process, offering investors straightforward legal clarity and direct stakes in the economic outcomes of the underlying securities. The DRUST (DigiFT U.S. Treasury Tokens), backed by high-grade, liquid U.S. Treasury Bills, represent a pioneering approach to providing stable, regulated financial instruments for stablecoin issuers and Web3 developers/managers.
Henry Zhang, DigiFT’s Founder and CEO, emphasizes the DR structure’s role in directly connecting investors with the underlying assets’ returns, reinforcing DigiFT’s commitment to introducing traditional financial assets to the Web3 domain with enhanced transparency and investor protection.
About DigiFT
Established in Singapore in 2021, DigiFT stands as the first regulated exchange for blockchain-based real-world assets, boasting approval from the Monetary Authority of Singapore. It provides a platform for asset owners to tokenize securities and offers investors continuous liquidity through an Automated Market Maker (AMM) system. The founding team, with a robust background in finance and deep blockchain expertise, is dedicated to innovatively pushing financial service boundaries while adhering to stringent regulatory standards.
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