Singaporean exchange DigiFT launches US Treasury bond token, RWA market value continues to rise

According to the announcement from DigiFT, a Singapore-based real-world assets (RWA) exchange, yesterday on the 25th, the company launched the first US Treasury bond depository receipt token, DRUST. This product allows users to have direct ownership of the benefits of US Treasury bonds while providing them with a clear legal framework and rights to the benefits.

DigiFT Launches Tokenized Deposit Certificates Based on U.S. Treasury Bonds

As a licensed exchange regulated by the Monetary Authority of Singapore (MAS), DigiFT has launched RWA tokens based on U.S. Treasury bonds. These tokens adopt a Deposit Receipt (DR) structure, allowing local users to have direct ownership of U.S. short-term Treasury bills, enabling them to receive legitimate returns equivalent to other financial instruments.

It is reported that the concept of Deposit Certificates originates from traditional finance, where a stock issuing company entrusts an overseas investment bank to issue a security in overseas securities markets to correspond to its stocks.

Investors holding a company's deposit certificates are indirectly holding its stocks and are entitled to receive proportional distributions when the company issues dividends.

The announcement indicates that each DRUST token is directly backed by highly liquid short-term U.S. Treasury bonds, providing services to stablecoin issuers seeking financial management solutions, Web3 development teams, and institutional investors.

The Federal Reserve Report Details RWA: Benefits of Real Asset Tokenization Are Many, but Financial Stability Risks Remain

"Deposit Certificates" Easily Understood and Protect Investor Rights

The statement also points out that most current attempts at tokens in the RWA field are mostly related to investment funds or derivatives, which are complex structures that are difficult for investors to understand their legal benefits:

However, DigiFT's deposit certificate structure, compared to terms like RWA, addresses this issue by providing investors with a straightforward legal framework for the product, without sacrificing control over their assets and earnings.

DigiFT founder Henry Zhang also commented:

The innovative DR token structure gives investors direct ownership of their assets and returns; through this DR structure, DigiFT will further introduce traditional financial assets into Web3, enhancing transaction transparency and investor protection measures.

Traditional Finance Enters the RWA Market

World Asset Tokenization Analysis Platform RWA.xyz data shows that the tokenized U.S. bond market value continues to reach new highs, currently at $780 million, with a weekly increase of 16.2%.

It is evident that the stable growth of the tokenized U.S. bond market value demonstrates the increasing interest of investors in the RWA field.

Previously reported, renowned banks such as HSBC, Standard Chartered, and JPMorgan have successively attempted tokenization management services for assets in the RWA field, from gold to bond funds.

Binance Research boldly predicted in its July 2020 report "Real World Assets: Market Outlook" that the overall market value of RWA in 2030 will reach $16 trillion.

However, in the face of the entry of international financial giants, BitMEX founder Arthur Hayes is pessimistic about the trend of RWA:

Any cryptocurrency that relies on national laws will never be massively successful.