U.S. Treasury-backed Stablecoin
A digital asset backed by U.S. Treasury securities, offering yield and regulatory alignment.
What is U.S. Treasury-backed Stablecoin?
U.S. Treasury-backed stablecoins, such as Ondo’s USDY and Hashnote’s USYC, are digital assets pegged to the USD and backed by U.S. Treasury securities or repurchase agreements, functioning as tokenized money market funds. Unlike fiat-pegged stablecoins backed by cash, these offer yield to holders, appealing to investors seeking stable returns with regulatory compliance. They are used for liquidity management and as a secure store of value, particularly in institutional settings, leveraging the safety of U.S. Treasuries.
Related Terms
Strategy (MSTR)
A business intelligence company that pioneered Bitcoin treasury strategy, holding over 638,460 BTC as its primary reserve asset.
TVL (Lending)
Total value of digital assets locked in DeFi lending protocols for borrowing and lending activities.
Tokenization
The process of converting real-world assets into digital tokens on blockchain, enabling fractional ownership and enhanced liquidity.
Utilization Rate (Lending)
The percentage of a lending pool’s deposited assets that are currently borrowed.
Maintenance Margin
The minimum collateral required to keep a leveraged position open.
Rollup
A rollup is a layer-2 scaling solution for Ethereum that processes transactions off-chain while leveraging Ethereum’s main chain for security and data availability, improving scalability and reducing costs.