Decentralized digital asset exchange DigiFT introduces perpetual bond support token

03/17/2023 09:54 • Metaverse Matters • 142 views

On March 17th, DigiFT, the decentralized digital asset exchange, has issued its first perpetual bond support token (PBRT01). After the subscription period, DigiFT has officially started AMM trading of PBRT01 on March 16th. PERT01 is issued by Red Cedar Digital Pte Ltd (a subsidiary of Digital FT), and the underlying assets are 8% perpetual bonds of Barclays Bank, which are held in trust by Citibank. PBRT01 can support qualified investors to subscribe using US dollars or USDC, and Web3 investors can invest in fixed income products without requiring a bank account. Investors can exchange assets on the chain through AMM, OTC, and P2P trading methods or redeem assets off the chain through issuers.

DigiFT issues perpetual bonds to support tokens and supports the use of USDC and US dollars to subscribe for real world assets

Analysis based on this information:

DigiFT, the decentralized digital asset exchange, recently launched its first perpetual bond support token (PBRT01) on March 17th. The token was issued by Red Cedar Digital Pte Ltd, a subsidiary of Digital FT, and is backed by 8% perpetual bonds of Barclays Bank held in trust by Citibank. PBRT01 is designed to support qualified investors and allows them to subscribe using US dollars or USDC, thereby giving them the opportunity to invest in fixed income products without requiring a bank account.

The token creates a unique opportunity for a class of investors who may find traditional investment avenues challenging or inaccessible due to complex processes or high barriers of entry. PBRT01 will be traded through automated market making (AMM), over-the-counter (OTC) and peer-to-peer (P2P) trading methods, allowing investors to exchange assets on the chain or redeem assets off the chain through issuers.

What is noteworthy about PBRT01 is its underlying asset, 8% perpetual bonds of Barclays Bank, is held in trust by Citibank. The perpetual bond can be issued by a corporate entity, and unlike traditional bonds, the perpetual bond does not have a maturity date. Consequently, the bondholder continues to earn interest on the bond indefinitely. This makes it an attractive instrument for investors looking to earn regular returns while maintaining low-risk and steady capital appreciation.

AMM trading, one of the modes of trading available for PBRT01, allows trades to be executed without the traditional order book, resulting in trades happening dynamically based on existing supply and demand. This eliminates the need for reliance on external market makers, making this a highly decentralized trading platform.

The impact of PBRT01 and more generally, DigiFT, can extend beyond just the investment domain. As decentralized technology continues to disrupt sectors that have traditionally been centralised, DigiFT could open up avenues for a wider range of investors who would have otherwise not had the same opportunities.

In summary, DigiFT’s PBRT01 represents an innovative financial product offering flexibility, liquidity, and ease of access to investors. The perpetuity of the bond, coupled with its backing from a reputable bank in Citibank, makes it highly attractive to investors who want asset appreciation, capital preservation and regular returns.

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