Zoth & Singularity Finance Bring Institutional-Grade Tokenized Treasury Bonds To DeFi Investors
Investors hoping to achieve more stable and consistent yields in the DeFi market may have finally found what theyre looking for in the shape of Zoths newest tokenized asset.
Zoth said today its partnering with Singularity Finance to launch a new DeFi product for institutional investors called Zoth Tokenized Liquid Notes Prime, or ZTLN-P. Its a tokenized asset thats primarily backed by U.S. Treasury ETFs and Money Market Funds, bringing them on-chain, with the promise of easy access and more consistent returns.
Zoth provides the sophisticated treasury management know-how thats required to optimize DeFi yields. Its utilizing Singularitys SFI tokenization framework to ensure ZTLN-P is built on a fully compliant infrastructure thats backed by a robust legal structure and sufficient liquidity, enabling investors to redeem their tokens at any time. With Zoths deep expertise in tokenizing traditional financial instruments, the collaboration promises institutions and asset managers an easy-to-access investment that will generate stable returns, similar to traditional treasury investments.
Zoth explains that ZTLN-P puts a priority on liquidity, safety and transparency, and in this way it claims to be setting a new standard for institutional DeFi investments. ZTLN-P is a blockchain-based digital asset thats designed to generate optimized yield at low risk, without encumbering investors with lock-in periods, instead giving them the flexibility to enter and exit a position at any moment. Its backed by a combination of Blackrock-managed ETFs and MMMs that largely hold U.S. Treasury bills, and its designed to deliver the kinds of predictable, low-risk yields that asset managers yearn for during periods of economic uncertainty.
It chose Singularitys SFI framework because it adheres to the Cayman Islands Monetary Authority (CIMA) and the Mutual Funds Act (2021 Revision), making ZTLN-P a regulatory compliant asset thats both secure and accessible. This, combined with what Zoth says is "unparalleled liquidity, should make ZTLN-P an enticing option for investors seeking more stable asset classes in a traditionally highly-volatile DeFi industry.
The announcement underscores the growing desire for tokenized MMFs, which have grown to more than $2.3 billion in value over the last year, driven partly by the flexibility of blockchain technology and the prospects of stable returns. Zoths ZTLN-P will compete with products like BlackRocks USD Institutional Digital Liquidity Fund or BUIDL, which is also backed by Treasury notes and provides on-chain yield, dividend accrual and distribution, and flexible custody options 24/7. Other tokenized funds include Franklin Templetons $420 million Franklin OnChain U.S. Government Money Fund (FOBXX) on the Avalanche blockchain.
Zoth says its focus on low-risk and high liquidity can help to position ZTLN-P as the new gold standard for tokenized assets, with strong guarantees that investors capital is deployed in a highly-vetted investment strategy thats designed to generate steady gains while preserving their principal.
Zoth Chief Executive Pritam Dutta said ZTLN-P represents one of the first institutional-grade short-term investments to leverage the efficiency and transparency of blockchain infrastructure, paving the way for a new era of DeFi. No longer will DeFi be seen as a speculative market, but a legitimate alternative to traditional finance, he said.
Singularity Finance co-founder Mario Casiraghi said ZTLN-P embodies safety, liquidity and transparency. This partnership sets a new standard for on-chain financial solutions, ensuring institutional investors can confidently navigate the DeFi space while enjoying consistent, low-risk returns, he added.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Text source: Crypto Daily™
