fsISTUSTD

Capital at risk. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.

A Money Market Fund (MMF) is not a guaranteed investment vehicle. An investment in MMFs is different from an investment in deposits; the principal invested in an MMF is capable of fluctuation and the risk of loss of the principal is to be borne by the investor.
The MMF does not rely on external support for guaranteeing the liquidity of the MMF or stabilising the NAV per share.

Short Term Money Market Funds do not generally experience extreme price variations. Changes in interest rates will impact the Fund. Counterparty Risk: The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss. Credit Risk: The issuer of a financial asset held within the Fund may not pay income or repay capital to the Fund when due.

Access liquid short-term U.S. Treasuries, delivering daily yield*, daily redemptions**, and 24/7/365 transferability.

The Fund allocates 100% of its assets to the BlackRock Institutional Cash Series US Treasury Fund, which is composed of cash, U.S. Treasury bills, and repurchase agreements. This structure enables investors to earn daily yield through digital securities issued on the blockchain.

* Daily yield tokens are issued each day in batch mint at 12:00 CET (Luxembourg). The Daily yield tokens are calculated on the distribution from the Underlying Fund less the Underlying Fund Management Fee (0.20%) per Investor principal invested. Daily yield tokens mature on the 1st business day of the following month, at redemption daily yield tokens are charged the redemption fee of 0.25% which is discounted to 0.10% until Jan 1st 2025. Fees are deducted from daily yield tokens, principal investment tokens are not subject to fee deductions.

** Redemption requests are processed daily, on Luxembourg business days. Redemption requests are entered into the underlying fund order book before the trading cut-off time will be processed that day, redemptions entered after the trading cut-off time will be processed on the next business day. Settlement is in Frictionless Institutional Deposit Tokens of the same base currency. Redemption of Frictionless Institutional Deposit Tokens are subject to their specific terms and conditions.

All values as of 11-Oct-2024

	Eligibility	Professional Clients, Qualified Clients and Qualified Investors Only
	Underlying	BlackRock ICS US Treasury Fund Core (Distributing)
	Uses	Yield Bearing Instrument, Instant Legal Cash Collateral
	1-Day Yield (Gross)	4.94%
	Benchmark	Secured Overnight Financing Rate (SOFR)
	Domicile	Luxembourg & Ireland (Underlying Fund UCITS V)
	Minimum Investment	USD 1,000.00
	Minimum Redemption	USD 0.01
	Redemptions (Principal)	Daily (Luxembourg Business Days)
	Redemptions (Coupon)	Monthly (1st Day)
	Trading Cut-off	23:00 CET (Luxembourg)
	Transactional NAV Closing	1.0000
	Underlying Fund Net Assets (millions)	27,951.84
	Total Funds Invested	188,209.12
	Fees	0.30% (Discounted from 0.45% until Jan 1 2025)
	Transferability	Instantly transferrable between permissioned holders
	Legal Structure	Floating Rate Note (tokenized debt security) issued by bankruptcy remote, orphan-entity protected compartment of Frictionless Markets Securities FT.
	Regulatory Compliance	Issued by Frictionless Markets Securities FT under the MiFID II prospectus regulation, Securitization Law of 2004 (Luxembourg as amended), Financial Collateral Act 2005 (Luxembourg as amended), Blockchain Acts of Luxembourg (I, II, III as amended)
	Documents	Fact Sheet Final Terms
	Networks

Attested, Tax Transparent, Bankruptcy Remote

At Frictionless, we are unwavering in our commitment to upholding the highest standards of transparency. Our approach ensures that our clients can trust us to safeguard their interests while navigating the complexities of the digital landscape. All investments, trades, yields and holdings in Frictionless Institutional Cash Funds are published daily, directly from the underlying fund order book, so you can have full confidence in our investment operations.

Frictionless Markets Securities operates within a Luxembourg-based, bankruptcy-remote structure with orphan entity protection, ensuring client assets are segregated and secure.

Our EU-based, tax-transparent vehicle provides clients with confidence and compliance under FATCA and CRS regulatory standards.

Is fsISTUSTD a stablecoin?

No, fsISTUSTD is a permissioned token certificate representing an investment or distribution from the underlying fund.

fsISTUSTD is issued as a financial instrument by FRICTIONLESS MARKETS SECURITIES Securitisation Fund RCSL O46, organised under the laws of Luxembourg and represented by FRICTIONLESS MARKETS Sàrl its Management Company, RCSL B272278 with the Legal Entity Identifier LEI, 213800PVGXAUM7KDT872 within the bankruptcy remote and orphan-entity protected compartment with the name fsISTUSTD

How do I get fsISTUSTD?

After you are onboarded and verified, your account and wallet addresses are permissioned into the Frictionless protocol. Frictionless Institutional Deposit Tokens (fsUSD) are required to invest in fsISTUSTD. You can obtain fsUSD by depositing funds to your account or converting USDC. See the fsUSD product for more information

Investing in fsISTUSTD is subject to trading cut-off times as described in the factsheet and above.

Once your order has entered the underlying fund order book your fsISTUSTD tokens will be minted and exchanged for fsUSD into your wallet. This typically takes a few seconds to complete.

How do I redeem fsISTUSTD?

Holders can redeem their fsISTUSTD for fsUSD subject to trading cut-off times as described in the factsheet and above.

Once your order has entered the underlying fund order book your fsISTUSTD tokens will be burned and exchanged for an equivalent amount of fsUSD into your wallet. This typically takes a few seconds to complete.

Who can mint, redeem or hold fsISTUSTD?

Only KYC/AML-verified clients who are permissioned on the Frictionless protocol can send or receive fsISTUSTD.

Verified holders can freely transfer tokens between each other directly. For added market protection, any attempt to transfer tokens to a non-permissioned wallet address (such as that of an ineligible investor) will result in the transaction being blocked, and a SARs report will be automatically generated.

Is fsISTUSTD compliant with regulatory requirements?

We have collaborated closely with specialist legal counsel, our structuring team to implement a structure which complies with securities laws, tax laws, anti-money laundering laws, and other regulatory requirements.

Frictionless Institutional Cash Fund Tokens are registered notes that adhere to the MiFID II prospectus regulation, the 2004 Securitization Law of Luxembourg, the 2005 Financial Collateral Act of Luxembourg, and the Blockchain Acts I, II, and III of Luxembourg.

Each token issued by Frictionless Markets originates from its own segregated compartment within the bankruptcy-remote structure of Frictionless Markets and is classified as a financial instrument. Frictionless Institutional Deposit Tokens are crypto assets recorded in the DLT that qualify as financial instruments under the laws of 2004, 2005, and 1915, and therefore currently fall outside the scope of the MiCA regulation.

Can I invest in fsISTUSTD using another currency?

Yes, first you must convert your alternative currency to fsUSD via our FXSwaps. For example fsJPY to fsUSD.

FXSwaps support spot and forward conversions, spot conversions will occur at the current exchange rate provided by our regulated FX partner, Alpha FX, through Frictionless Markets. Forward conversions are available upon request via our portal.

Once you hold the correct denomination of currency, fsUSD, you can invest in fsISTUSTD as normal.

Can I invest or redeem fsISTUSTD with USDC?

Yes, Frictionless offers instant ERC20 swaps through our partnership with Circle and other VASP-registered custodians in the EU.

For more information on ERC20 swaps, click here

We are working on bringing instant redemptions via USDC to market soon!

Frictionless Institutional Cash U.S. Treasury Fund

Access liquid short-term U.S. Treasuries, delivering daily yield*, daily redemptions**, and 24/7/365 transferability.

Attested, Tax Transparent, Bankruptcy Remote

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