Portfolio management solution SingularityDAO has announced that it’s integrated products developed by tokenized real world asset (RWA) provider Cogito Finance. The move will enable users of SingularityDAO’s decentralized protocol to trade tokens whose value is derived from the performance of several RWA markets.
SingularityDAO has been steadily expanding the products its users can access with the goal of providing a full suite of onchain financial services. The integration of Cogito Finance will enable users of SingularityDAO to access a range of tokens whose value is recorded onchain daily, allowing them to track the performance of major RWA markets.
Trading Tokenized T-Bills
One of Cogito’s flagship products that’s been added to SingularityDAO is TFUND, a tokenized market for U.S. treasury bills. T-bills are short-term debt securities issued by the U.S. Department of the Treasury to help fund government operations and manage national debt. They are considered one of the safest investments because they are fully backed by the U.S. government.
T-bills are short-term securities that are typically issued with maturities ranging from four weeks to 12 months. Cogito’s TFUND has a maturity of 0-3 months, allowing SingularityDAO users to gain exposure to this low-risk asset class entirely onchain. Their introduction will accelerate the trend for tokenizing real world assets, a market that’s now grown to over $5B.
Bringing Alternative Investments to DeFi
The provisioning of RWAs onchain expands the opportunities available to DeFi users, who can enjoy the benefits of non-custodial asset ownership while operating within a compliant framework. It’s essentially a solution that allows traders to enjoy the best of both worlds: the robust security and decentralization that is at the heart of DeFi coupled with access to assets that are normally only available to accredited TradFi investors.
In addition to TFUND, Cogito offers two other tokenized RWAs of note. GFUND (Green Bonds) is classified as a medium-risk investment focused on projects with an environmental slant, while XFUND is focused on high-growth sectors in technology and artificial intelligence. Speaking of AI, it’s already a cornerstone of SingularityDAO’s platform, which uses the technology to enhance its asset management solutions.
Driving Demand of DynaVaults
The Cogito Finance products that SingularityDAO will be rolling out to its users form part of its DynaVaults v2. These are designed to provide access to high quality yields, increasing the opportunities available to DeFi users while optimizing compliance and security. As a result, users can grow their wealth by drawing yield from a range of sources without materially raising risk in the process.
Once upon a time, DeFi meant yield farming, lending and borrowing, and trading. While these verticals are still an integral part of the industry, it’s since expanded to incorporate a much broader range of options for onchain users, including yields drawn from both digital assets and TradFi markets. The growth of RWA tokenization is expected to drive greater institutional adoption of DeFi through providing a framework to access regulated financial products enhanced by the transparency and security of public blockchain networks.