Adapt3r Digital, the manager of the U.S. Treasury Fund (“ADAPT I LP” or “tfBILL” or “the Fund”), is a specialized digital asset management firm with a unique blend of traditional financial services and blockchain expertise. Our mission is to bridge the gap between traditional capital markets and Web3, offering compliant products that unlock new sources of yield not previously available to on-chain market participants. To this end, tfBILL is our first product aiming to offer US Treasury yields to on-chain investors on TrueFi. Our team’s unique background includes assisting in the management of over $6 billion in Collateralized Debt Obligations, liquid fixed income, and digital assets. This wealth of experience positions us uniquely in the market and enables us to offer a unique product to our investors as well as expand the Real-World Asset (RWA) presence of the TrueFi protocol.
The launch of ADAPT I LP and tfBILL marks just the beginning of Adapt3r Digital’s long-term vision for launching real-world yield products on TrueFi. Our strategic roadmap encompasses a range of additional products. By harnessing our unique background and continuing to build and grow alongside TrueFi, we are committed to delivering a diverse portfolio of products that push the boundaries of traditional finance and crypto integration.
TrueFi is an ideal ecosystem to launch our U.S. Treasury Fund. Over the next year, we plan to manage a significant pool of financing on the TrueFi platform, bringing a unique opportunity for on-chain investors to access short-term U.S. Treasury Bill yields. tfBILL, developed in partnership with Archblock, provides 24/7 on-demand subscription and redemption, offering a unique product to our investors and expanding the RWA presence of the TrueFi protocol. tfBILL is built upon TrueFi’s newest product, Asset Vaults, which was developed hand-in-hand with TrueFi contributors at Wallfacer Labs.
The tfBILL portfolio will be composed of U.S. Treasury Bills, providing investors with a yield product that captures a significant portion of the U.S. effective federal funds rate. As of June 30, 2023, the effective federal funds rate was 5.08%. tfBILL has been built to comply with both domestic and foreign jurisdictions, although we will initially restrict access to non-US investors.
Investors will have real-time visibility of the off-chain U.S. Treasury Bills held by the Manager, as well as deposits and withdrawals to the fund. This transparency extends to the Manager’s portfolio, yield generation, fees and expenses, and ongoing maturity profile, all of which can be monitored in real-time. Streamlined investor reporting statements will be provided by Archblock.
Investors will supply USDC into the Pool and mint tfBILL tokens in exchange. The Pool will send USDC to the Fund’s custody wallet. The proceeds will then be sent directly to the Fund’s fiat off-ramp. Adapt3r Digital LLC, as the Manager, will be responsible for the administrative management of the Pool, ensuring the seamless conversion of USDC to USD, and the secure custody and trading of assets through an SEC- and FINRA-regulated broker-dealer.
tfBILL is an ERC-20 representation of Limited Partner interests in ADAPT I LP, a BVI-domiciled, bankruptcy-remote fund entity. tfBILL holders hold sole legal recourse to all assets in the Fund through a Limited Partnership Agreement. This structure ensures a high level of security and compliance for our investors.
Illustrative flow of funds:
- Investors supply USDC into the Pool and mint tfBILL tokens in exchange.
- Adapt3r Digital LLC acts as Manager and is responsible for administrative management of the Pool.
- The Pool sends USDC to the Fund’s custody wallet.
- The proceeds are sent directly to the Fund’s fiat off-ramp. Adapt3r Digital LLC has engaged an on/off ramp provider to hold USDC, convert USDC to USD, and wire funds to an off-chain broker-dealer.
- Adapt3r Digital LLC has engaged a FINRA-regulated broker dealer for prime brokerage services to custody and trade assets.
- Using its broker dealer account, Adapt3r Digital LLC executes trades, clears, and custodies the Pool’s assets.
- tfBILL holders hold sole legal recourse to all assets in the Fund through a Limited Partnership Agreement. The Manager is only permitted to manage the Fund according to the Fund’s Offering Memorandum.