Singapore’s DigiFT launches US T-Bill RWA tokens
Quick Take
- DigiFT, a Singapore-licensed entity, launched tokens that represent a direct claim on U.S. Treasury Bill receipts.
- The market capitalization for real-world asset tokens grew 15% in the past 24 hours to $6.5 billion.
Singapore’s on-chain real-world asset (RWA) exchange DigiFT announced today the launch of new tokens based on the U.S. Treasury Bills.
The new product adopts the structure of depository receipts, which traditionally involves a certificate reflecting shares of a company outside the local stock market. Using this structure, DigiFT said it offers users direct beneficial ownership of AA+ rated and short-term T-Bills, and will provide a legal stream of returns from underlying securities.
“Presently, the majority of RWA tokens in circulation are wrapped tokens that represent interest in a special purpose vehicle, feeder fund or derivative instrument which holds or mirrors the underlying assets,” the company said in the announcement. “These wrapped tokens are often structured in complex legal arrangements, making it challenging for investors to fully comprehend the legal implications.”
The company stated that its depository receipt structure addresses this issue by providing a “more straightforward” legal framework that would be easier for investors to understand.
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DigiFT added that its new RWA token will be suited for stablecoin issuers and Web3 product developers that are looking for regulatory-compliant treasury, as well as cash management solutions. Institutional and accredited investors can also access the new product from authorized self-custodial wallets using fiat currency or stablecoins, according to the announcement.
DigiFT holds a Capital Markets Services License and is a Recognized Market Operator, according to the Monetary Authority of Singapore website.
RWA surge
The market capitalization for RWA tokens has grown 15.2% in the last 24 hours to $6.5 billion, according to CoinGecko data, indicating a rising interest in the asset class. Ondo, the RWA token with the largest market cap on CoinGecko, expanded nearly 93% in value over the past seven days.
Binance Research identified real-world asset tokenization as one of the key themes in crypto in 2024. Bringing off-chain assets onto blockchain networks can offer improved transparency and efficiency, Binance Research said.
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