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Singapore-based fintech company DigiFT is making waves in the digital asset space with the announcement of the world's first US Treasury bill depository receipt (DR) tokens.
DR tokens are a type of security token that represents fractional ownership of an underlying asset. This can be any asset class, such as stocks, bonds, or even real estate. In DigiFT's case, these DR tokens are specifically backed by US Treasury bills, offering investors exposure to the traditionally secure US debt market.
Traditionally, investing in US Treasury bills has required significant capital upfront. DigiFT's DR tokens break down this barrier by allowing investors to purchase fractional shares of these bills.
“DigiFT’s innovative DR structure addresses a pain point in the current RWA market, empowering investors with direct ownership of underlying assets and returns. Looking ahead, DigiFT remains committed to expanding the universe of traditional financial assets in the Web3 space through the DR model, offering better investor protection and transparency,” Henry Zhang, founder and CEO of DigiFT said in an announcement on Monday.
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Furthermore, DigiFT emphasizes that their DR tokens comply with regulations, which can provide investors with greater peace of mind. Traditional asset ownership can involve complex legal and regulatory hurdles. By adhering to regulations, DigiFT aims to streamline the investment process and make it more accessible, the announcement said.
Established in 2021 and previously part of the Monetary Authority of Singapore's FinTech Regulatory Sandbox, DigiFT was awarded the Capital Markets Services (CMS) licence and obtained recognition as a Recognised Market Operator (RMO) in December 2023.
