For the crypto industry, DigiFT is the first firm to launch the first D.R. tokens linked directly to the US treasury bill.
Interest in depository receipt (D.R.) tokens is on the rise. DigiFT is the latest to join the trend, offering customers the opportunity to access the United States Treasury Bill directly on the blockchain.
In an official announcement on Monday, March 25, the company introduced the first-ever Treasury Bill depository receipt tokens representing direct beneficial ownership of the underlying US Treasury Bill.
A Significant Milestone Achievement
The concept of introducing D.R. tokens to the financial markets began in the late 1920s when JPMorgan Chase unveiled the first American Depositary Receipt (ADR) to facilitate the trading of British retailer Selfridges shares on the New York Stock Exchange (NYSE).
Since then, the use of depository receipts has gained momentum with the introduction of Global Depositary Receipts (GDRs) in the 1990s by international banks to cater to investors outside the United States.
Companies in different sectors are also using the concept to offer their customers access to other financial products unavailable in their ecosystem.
However, for the crypto industry, DigiFT is the first firm to launch the first D.R. tokens linked directly to the US treasury bill.
The move marks a significant milestone in the progression of blockchain-based finance, providing increased accessibility, transparency, and investor empowerment within the real-world asset ownership sector.
Backed by AA+ rated Short-term US Treasury Bills
The new offering is the first of a series available under the D.R. structure, DigiFT US Treasury Tokens (DRUST). Each digital asset is backed by AA+-rated, highly liquid, short-term US Treasury Bills.
According to the announcement, the product is tailor-made for stablecoin issuers, Web3 product developers, and managers seeking regulatory-compliant treasury and cash management solutions.
The tokens are also available to institutional and accredited investors worldwide through their authorized self-custodial wallets using fiat currencies and stablecoins.
The company, based in Singapore, said the D.R. tokens are designed in compliance with existing regulations to safeguard investors’ rights and protection on-chain. Unlike existing Real World Assets (RWAs), the product offers a straightforward legal framework.
DigiFT to Bring More Traditional Financial Products to Blockchain
The products are also designed to tackle the current legal challenges facing RWAs on the blockchain. According to DigiFT, DRUST aims to address the lack of a clear regulatory framework enabling tokens to accurately represent the direct beneficial interest of token holders in the underlying asset while facilitating settlement on-chain.
The company also plans to expand its business offerings in the future by bringing more traditional finance products into the crypto market through the D.R. model.
“DigiFT’s innovative D.R. 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 D.R. model, offering better investor protection and transparency,” Henry Zhang, the CEO of DigiFT.