Cogito Finance will launch a fund that will put US Treasury securities on the Blockchain

Cogito Finance, a pioneer in blockchain-based financial solutions, today introduced its latest product: TFUND. The new product aims to provide crypto-native investors and institutions with simplified access to US Treasury securities through blockchain technology.

TFUND is designed to serve web3 companies and institutional investors who want to protect their assets from inflation by investing in stable, low-risk assets such as U.S. Treasuries. This initiative not only safeguards investments from the harmful effects of inflation, but also overcomes obstacles related to dialogue with traditional banking systems, especially in regions less receptive to cryptocurrencies.

Additionally, TFUND offers competitive returns in line with prevailing Federal Reserve rates, which are attracting growing interest among investors.

In addition to U.S. Treasuries, Cogito Finance plans to offer green bonds and AI-powered portfolios

Cogito Finance has implemented rigorous security measures to protect investor interests and improve transparency within its fund. The company protects investors’ funds off-chain to mitigate risks related to smart contracts, while ensuring greater security through KYC procedures that allow token transfers only to verified addresses. Additionally, Chainlink’s Proof of Reserves technology is used to offer daily updates on the fund’s net asset value, promoting greater investor confidence.

Cloris Chen, CEO of Cogito Finance, highlighted the significant impact of the entry of major financial entities such as BlackRock into the securities tokenization industry, viewing it as a strong affirmation of Cogito’s pioneering efforts in tokenizing US Treasury funds. Chen believes that the tokenization of traditional securities on public blockchains is a crucial evolutionary step for financial markets.

Looking ahead, Cogito Finance is exploring expansion into other on-chain investment opportunities beyond U.S. Treasuries, including green bonds aimed at environmentally conscious investors seeking profitable returns. The company is also pursuing AI-based portfolio management to capitalize on emerging opportunities in the industry.

Cogito’s broader mission is to connect traditional finance with blockchain technology, starting with TFUND as a step towards providing a broader range of diversified and secure investment options for the crypto community. This initiative is designed to enable institutions and investors to engage in the evolving landscape of finance.

Source: Cogito Finance official website.

The opinion of the CEO of Cogito Finance on fund development, cryptocurrency regulation and current market trends

Cloris Chen, CEO of Cogito Finance, explained the motivations and strategies behind the development of TFUND, this new financial product tailored to the specific needs of crypto-native investors. Unlike traditional financial solutions, TFUND offers an alternative to crypto companies whose treasuries are predominantly in stablecoins. Previously, these companies had limited options, mainly limited to cryptoassets or DeFi deposits to preserve capital or improve their financial position.

However, challenges such as unsustainable yield farming and regulatory uncertainty present significant risks, which are a concern for companies seeking minimal exposure to volatility. In contrast, traditional markets, especially Treasury Bonds, offer a more stable and reliable investment option with a risk-free rate of around 5%, making them very attractive to Web3 companies.

When asked how TFUND would navigate the regulatory environment, Chen said that TFUND is structured as a tokenized security, ensuring full regulation and compliance under the Cayman Islands Monetary Authority. As a result, this compliance provides clearer regulatory guidance with respect to cryptocurrencies, especially in jurisdictions that maintain a strict stance on cryptocurrencies.

Regarding market trends, Chen highlighted the importance of tokenized traditional financial assets, which are increasingly driving the narrative around real-world assets (RWA) as a treasury management solution. As market dynamics continue to change, Chen expects growing interest among Web3 companies to tap into fixed income assets, particularly government debt. This trend is in line with the risk-averse nature of these companies and is central to TFUND’s strategic planning for the future.

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