Singapore's DigiFT Launches DUST, a U.S. Treasury Token on Public Blockchain

Decentralised exchange (DEX) platform, DigiFT, recently introduced the DigiFT U.S. Treasury Token, otherwise also known as "DUST."

This token is a fully regulatory-compliant U.S. Treasury token issued on a public blockchain.

DUST allows accredited and institutional investors to engage with U.S. Treasuries through an on-chain channel.

The physical custody of the U.S. Treasuries is managed by a licensed broker-custodian located in Singapore.

A significant feature of DUST is its distinct maturity date set for 31 December 2023.

This aspect provides investors with a clear timeline for their investments in U.S. Treasuries.

The security token offering is made accessible with either fiat (U.S. Dollar (USD)) or stablecoins (USD Coin (USDC)), and it requires a minimum investment of 1 USD/USDC, which is relatively affordable.

According to Henry Zhang, the CEO of DigiFT, the launch of DigiFT U.S. Treasury Token demonstrates the intention to combine the benefits of decentralised finance (DeFi) and traditional yield mechanisms for investors.

DUST's unique offering as a fully regulatory-compliant U.S. Treasury Token on a DEX platform expands the opportunities for investors to explore tokenised real-world assets ("RWAs") with transparent backing and robust risk management measures.

What is a "Tokenised Asset"?

A "tokenised asset" refers to a digital representation of a real-world asset, such as U.S. Treasuries in the case of the DUST token mentioned in the article.

It's like owning a digital version of something valuable, just like owning shares in a company or investing in a government bond, but in a digital and blockchain-friendly format.

This digital representation is often more efficient and provides additional features like clear maturity dates and options to invest with fiat currency

Growing Tokenisation Market

The DUST token, issued by Red Cedar Digital Pte. Ltd., an affiliate of DigiFT, boasts a YTM (Yield to Maturity) of 5.40% as of 3 August 2023.

DigiFT, founded in 2020, is noteworthy as the sole DEX enrolled within the Monetary Authority of Singapore (MAS) FinTech Regulatory Sandbox.

The tokenised treasury market has been gaining momentum, surpassing USD 680 million in early August 2023.

sDUST aims to support the wider adoption of digital tokens by offering compliance features, ultimately advancing the innovation of new, compliant solutions for investors.