DigiFT, a decentralized exchange (DEX) for digital assets currently enrolled in the Monetary Authority of Singapore (MAS)’s FinTech Regulatory Sandbox, announced the launch of the first regulatory-compliant Ethereum (ETH) staking token (“dETH0924“), offering accredited and institutional investors secure and compliant exposure to the second largest digital asset and its staking rewards.
Backed by decentralized finance protocol, Lido Finance’s wstETH — the largest ETH staking protocol — investors will be able to earn returns of up to 4% APR (denominated in ETH) while supporting the Proof-of-Stake (PoS) mechanism on the Ethereum blockchain.
Investors will be able to subscribe to the regulatory-compliant ETH staking token with either fiat or stablecoins, at a minimum investment amount of US$5,000. The dETH024 token has a specific maturity date of 10 September 2024, but will be redeemable daily throughout its 12-month term.
Speaking on the launch of dETH0924, Henry Zhang, Founder & CEO of DigiFT said, “We are proud to be unveiling another ‘first’ in the decentralized finance (DeFi) space, following our recent launch of the first U.S. Treasury Token issued on the ETH public blockchain. The launch of these regulatory compliant tokens highlight DigiFT’s focus to bridge the worlds of DeFi and TradFi, combining the best of blockchain technology with regulatory infrastructure to transform the financial sector.”
The dETH0924 token is issued by Red Cedar Digital Pte. Ltd., an affiliate of DigiFT.
Investors will be able to track and verify the status of their underlying assets on DigiFT Exchange through the Proof-of-Asset information published by Red Cedar. In addition, all transactions and storage details are recorded on-chain for added security and transparency, bringing trust and security into the ecosystem.
Founded in 2020, DigiFT is the first and only DEX enrolled within the MAS FinTech Regulatory Sandbox. Earlier last month, DigiFT launched DigiFT U.S. Treasury Token (DUST), the first regulatory-compliant security token issued on the ETH public blockchain.