Singapore-based decentralized exchange DigiFT on Thursday launched a regulatory-compliant U.S. Treasury token backed by a U.S. Treasury note with a specific maturity date of December 31, 2023. This new product offers investors a way to invest in blockchain Treasury tokens, bridging the gap between decentralized finance and traditional finance.

DigiFT, a Singapore-based decentralized exchange for digital assets, has launched the DigiFT U.S. Treasury Token (DUST), “the first fully regulatory-compliant U.S. Treasury token issued on a public blockchain.” .

According to the press release, DUST is backed by a U.S. Treasury note with a specific maturity date. This newly launched asset provides licensed and institutional investors with an on-chain product that enables them to invest in U.S. Treasuries. The physical U.S. Treasury bonds are held by a licensed broker-custodian in Singapore, the report said.

Compared to tokenized Treasury bonds, DUST provides investors with a regulated, blockchain-based channel to purchase U.S. Treasury bonds due December 31, 2023. Additionally, investors can invest in the token with USD or the USDC stablecoin. The minimum investment amount in DUST is 1 USD/USDC.

Henry Zhang, CEO of DigiFT, said: “The launch of the DigiFT U.S. Treasury Token represents our commitment to bringing the best of decentralized finance (DeFi) and traditional yield to investors. The first fully regulatory-compliant U.S. Treasury token offered, DUST will enable us to expand the avenues for investors to explore tokenized real-world assets (RWA) on-chain, with full transparency while being supported by institutional-grade risk management mechanisms .”

The launch of DUST marks DigiFT’s third offering to connect decentralized finance (DeFi) and real-world assets (RWA) through regulated products. The decentralized exchange noted in a press release that the new security token also provides same-day settlement services for investors with investments under $50,000.

From a broader perspective, DUST’s market debut highlights the continued interest in tokenized Treasury securities. According to real-world asset data company RWA.xyz, the market value of blockchain-based investment solutions that package T-Bills, bonds, and money market funds into token form has exceeded 6.$400 million.

Last week, blockchain company Ondo Finance launched USD Yield, the first tokenized bond backed by Treasury bonds and bank deposits. This product is intended for non-U.S. retail and institutional investors.