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Launch of the first ever US Treasury Bill’s depository receipts by DigiFT, a Singapore-licensed exchange, for on-chain real world assets will offer an opportunity for investors to invest in the underlying US Treasury Bill, through the same.
The holding of depositary receipts (DR) can be accounted to the well-proven structure in traditional finance that came in the late 1920’s when JP Morgan created the first American depository receipt (ADR) for the purpose of trading in the shares of British retailer Selfridges on the New York Stock Exchange (NYSE).&nbsp; The benefits of DigiFT’s DR 
DigiFT pioneered a token issuance model that addresses a critical market challenge with Real World Asset (RWA) tokenization by deploying the DR structure on-chain. Issues like the lack of a robust legal framework to enable “<a href="https://news.todayq.com/defi-tokens-on-the-verge-of-major-comeback-bernstein-report/" target="_blank" rel="noopener noreferrer nofollow">tokens</a>” to represent the direct beneficial interest of token holders while facilitating on-chain settlement.&nbsp;&nbsp;
At present, a number of RWA tokens are wrapped types of assets minted through an opportunity fund, SPV or a derivative instrument investing in some assets in the future.&nbsp;
These bonded instruments, oftentimes, are structured in complex legal way which makes it difficult for investors to respond when unexpected legal occurrence happens. When participating in these investments, traders obtain a user certificate that provides them with a limited vision or none of the benefits at all that the cryptocurrency they put their money on has to offer.
In contrast, these tokens issued on the DigiFT Digitized Rights platform offer significantly easier compliance with attorney regulations as they have a much simpler legal basis which allows investors to more readily understand it. These tokens stand as an electronic representation of a beneficial fractional interest on the underlying market assets, hence, making it possible for investors to rightfully claim their share of economic tradeoffs earned by the assets. What else? 
Singapore-licensed DigiFT is the first <a href="https://news.todayq.com/what-is-real-world-asset-tokenization-what-is-so-exciting-about-it/" target="_blank" rel="noopener noreferrer nofollow">RWA</a> exchange on the public blockchain licensed by a Tier-1 financial regulator, offering regulated financial solutions on-chain.&nbsp; Under the DR structure, DigiFT US Treasury Tokens (DRUST) is the first in a series.
Henry Zhang, founder and CEO of DigiFT said, “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.”&nbsp;

Singapore-licensed exchange brings first-ever crypto DRs

Todayq News

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