Regulatory-Compliant US Treasury Token Rising as DUST Launches on Singapore DEX DigiFT

DigiFT DUST is backed by a single US Treasury note with a maturity date of December 31st.

Decentralized exchange (DEX) DigiFT has launched a regulatory-compliant version of the U.S. Treasury Department token called DUST, according to an Aug. 10 press statement.

The Singapore-licensed crypto platform said the token is backed by a single U.S. Treasury bond with a Dec. 31 maturity date. This offers accredited institutional investors the opportunity to invest in U.S. Treasuries through on-chain access.

Henry Zhang, CEO of DigiFT, said that the product will bring investors the best of both decentralized finance and traditional returns. He added:

“DUST will allow us to broaden the avenues for investors to explore on-chain tokenized Real World Assets (“RWA”) with full transparency, backed by institutional-grade risk management mechanisms.”

Investors can use fiat currency or stablecoins to purchase U.S. Treasury bonds through DUST. The minimum investment amount of this product is 1 USDC/USD, which provides investment opportunities for people from different financial classes.

Meanwhile, DigiFT said DUST offers same-day settlement for investments up to $50,000, subject to liquidity.

According to RWA data, the tokenized treasury and bond market has grown significantly, with the total value of assets locked in the industry exceeding $650 million. Some popular protocols in this field include Backed, Maple, Ondo, etc.

Maple Finance launches on-chain treasury pool

Meanwhile, Maple Finance (MAP), another on-chain marketplace for institutional investors, recently received a waiver from the U.S. Securities and Exchange Commission (SEC) to offer one-month U.S. Treasury yields in the country.

Maple wrote:

“The structure provides lenders with the most direct access to on-chain US T-bill rates, recourse to T-bill collateral, and no ETF liquidity or decoupling risk.”

With the waiver, U.S. investors gain access to Maple Finance’s treasury pool of funds that was previously only available to foreign investors.

The SEC is able to grant waivers under its Rule D 506© exemption. The regulator’s website notes that the exemption allows companies to broadly solicit and advertise products to accredited investors.

According to Maple Finance, the pool has a 30-day annualized yield (APY) of 4.77%. The outstanding loan value is $21.7 million, with more than $193 million in loans disbursed.