Initial launch: tokenized corporate bond ETF

Spout’s first product is a tokenized representation of AAA-rated U.S. corporate bond ETFs, such as LQD and VCIT. These ETFs are held 1:1 with a licensed broker-custodian and reflected on-chain through a secure, privacy-preserving token issued on Pharos. The token tracks the net asset value (NAV) of the underlying ETFs and accrues real-world yield over time—offering a low-volatility, compliant asset for on-chain treasuries.

Unlike most tokenized RWA products that focus on short-duration T-bills, Spout offers higher yield with only modestly higher risk—making it a more efficient choice for capital deployment. And with built-in privacy powered by fully homomorphic encryption (FHE), Spout enables confidential balances and transfers without compromising composability. It’s the first institutional-grade fixed-income product that meets the transparency standards of DeFi while preserving the discretion expected in TradFi.