In essence, the product aims to facilitate access to US Treasuries for crypto-native investors and institutions via blockchain technology. TFUND aims to provide a solution for web3 companies and institutions looking to hedge against inflation by investing in low-risk, stable assets such as US Treasuries. This move is intended to protect holdings from the erosive effects of inflation, while also addressing challenges associated with traditional banking systems, particularly in jurisdictions with limited crypto-friendliness.
According to the official press release, investors can expect competitive returns linked to current Federal Reserve rates, which are gaining traction in the market.
By leveraging TFUND, crypto-native investors can streamline the process of accessing low-risk investments, bypassing the typically lengthy procedures required for brokerage accounts. Additionally, TFUND allows investors to maximize returns by safely allocating idle stablecoins in a low-risk environment.
Investor funds are securely held off-chain to minimise risks associated with smart contracts. KYC procedures are enforced, with tokens transferable only to verified addresses. Daily insights into the fund's net asset value are provided through Chainlink's Proof of Reserves technology.
Officials from Cogito Finance view the entry of entities such as BlackRock into securities tokenization as a validation of their initial concept for a tokenized US Treasury fund. They expressed their belief that tokenizing traditional securities on public blockchains is the next inevitable step in the evolution of financial markets.
Looking ahead, Cogito Finance plans to expand beyond US Treasuries to offer additional on-chain investment opportunities, focusing on instruments such as green bonds to cater to environmentally conscious investors while delivering decent returns. The company also aims to leverage AI-powered portfolio management opportunities to capitalise on the sector's growth potential.
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