Singularity Finance And Zoth Team Up To Launch Tokenized Real World Asset ZLTN Prime

AI blockchain Singularity Finance has announced a partnership with Zoth, the leading developer of on-chain tokenized products for institutions. The collaboration has seen the launch of Zoth Tokenized Liquid Notes Prime (ZTLN-P), a tradable RWA backed by U.S. Treasury ETFs and money market funds (MMFs). ZTLN Prime offers institutional investors a secure solution for acquiring treasury assets while generating consistent returns.

ZTLN-P was developed by Cogito, initially under the name of TFUND. Following Cogito’s merger to form Singularity Finance, TFUND will now be issued as ZTLN-P via Cogito’s tokenized fund Ergo Sum SPC. The launch of ZTLN-P will complement Singularity Finance’s product suite, which includes treasury management solutions for individuals and entities, alongside other tokenized funds.

Using the Blackrock-managed iShares ETFs and MMFs, with a focus on U.S. Treasury bills, ZTLN-P delivers low-risk returns with deep liquidity – qualities that are typically in short supply when it comes to DeFi yields.

T-Bills Get the Tokenization Treatment

ZTLN-P represents a class of tokenized fund shares managed by established asset managers. This structure offers institutional investors exposure to low-risk, yield-bearing securities.

The launch of ZTLN-P, through a collaboration between Zoth and Singularity Finance, provides a first taste of what the Singularity ecosystem will be bringing to market in the months ahead as its scalable L2 gets up to speed. In addition to supporting AI assets, Singularity Finance will seamlessly integrate RWAs with decentralized infrastructure using secure and compliant onchain infrastructure.

For Singularity Finance, this partnership represents a further step in integrating real-world assets with AI-focused and data-intensive applications. By leveraging its tokenization framework, Singularity Finance aims to eventually facilitate the tokenization of assets tied to the AI economy.

Onchain Treasury Management for Institutional Players

One of the reasons why the introduction of ZTLN-P is likely to appeal to institutional investors is on account of the best-in-class treasury management built in courtesy of Singularity Finance combined with Zoth’s sophisticated tokenization framework. This is designed to give investors access to optimized DeFi yields while ensuring strict compliance. As a result, asset managers and institutional investors can efficiently manage their treasury while generating consistent returns.

Zoth CEO Pritam Dutta explains: “ZTLN-P is an industry-driven product that aligns institutional-grade short term investments such as Blackrock iShares Treasury Bond ETF with the efficiency and transparency of blockchain. With Singularity Finance’s one-of-a-kind expertise, this partnership marks the beginning of a new era where DeFi is no longer a speculative market but a legitimate alternative to traditional finance.”

Why RWAs Are on the Rise

Until recently, most decentralized finance use cases centered on native crypto assets with inherently volatile prices. The introduction of stable, yield-bearing RWAs onto public blockchains signals the start of a new chapter. Institutional participants are more comfortable engaging with assets they recognize and trust, and the legal clarity provided by regulated structures like Ergo Sum SPC’s mutual fund should further encourage institutional participation.

Instead of relying on complex yield farming schemes or highly volatile crypto assets, institutional players can now turn to tokenized notes representing real-world bonds and treasuries. This structure not only mitigates risk but also opens the door to a larger pool of sophisticated investors who require robust custody and a clear legal framework.

Build It and They Will Come

The collaboration between Zoth and Singularity Finance is part of a broader trend for DeFi platforms forming partnerships that marry versatile tokenization frameworks with and strong GTM strategies. As more regulated entities participate, the quality of onchain offerings will improve, further lowering the barriers for institutional capital to enter.

Beyond short-term liquidity and stable yields, these integrations also pave the way for innovative financial instruments. Once the groundwork is laid with simpler, more traditional assets, the same infrastructure can be extended to more experimental territory, including tokenizing AI services, intellectual property, or data streams. By starting with stable, low-risk yields, RWAs can gain credibility and establish best practices that will ultimately help developers and entrepreneurs branch into more complex and data-driven assets.

AI Meets RWAs

For Singularity Finance, ZTLN-P marks another milestone in its ambition to tokenize not only RWAs but also the broader AI economy. As AI becomes a key driver of technological innovation, integrating AI-related data, services, and IP into decentralized finance is the next horizon. The synergy between secure, tokenized TradFi instruments and emerging AI-powered solutions could yield a new generation of financial products that provide greater stability and enhanced functionality.

AI-driven models for risk assessment and portfolio optimization could seamlessly interact with tokenized real-world assets, for example, offering algorithmically refined strategies to manage yield and capital allocation. This fusion of AI and tokenized assets highlights how different threads of tech innovation – DeFi, RWA tokenization, and AI – are rapidly coalescing. The future of all this symbiosis is still being mapped out, but the early signs are promising.