The $3.4 billion tokenized Treasuries market has seen a shift in rankings, with Hashnote’s USYC token surpassing BlackRock’s BUIDL token in market capitalization. USYC has grown five-fold in size over the past three months, reaching over $1.2 billion in market cap according to rwa.xyz data. This growth marks the importance of connecting tokenized products with decentralized finance (DeFi) applications, allowing for broader adoption and scalability.
USYC represents the Hashnote International Short Duration Yield Fund, which invests in reverse repo agreements on U.S. government-backed securities and Treasury bills held at the Bank of New York Mellon. The token has benefited from its association with the DeFi protocol Usual and its real-world asset-backed stablecoin, USD0. Usual aims to compete with centralized stablecoins by offering rewards to holders through revenue redistribution from its stablecoin’s backing assets. Additionally, Usual’s governance token (USUAL) has seen impressive growth following its listing on Binance.
Despite its rapid growth earlier this year, BlackRock’s BUIDL token has been outperformed by USYC due to its integration with the Ondo Short-Term US Government Treasuries (OUSG) token on DeFi platform Ondo Finance. The success of USYC and BUIDL highlights the increasing demand for yield-generating stablecoins backed by tokenized products in the crypto market. Investors are attracted to these tokens as they provide access to yield and ownership in the protocol, unlike traditional stablecoins like USDT or USDC.
Usual’s redistribution of yield and ownership to users sets it apart from other stablecoins and has contributed to its rapid growth in recent months. The protocol’s ability to attract significant investment and achieve a 50% appreciation in its governance token value following its listing on Binance demonstrates the growing interest in DeFi and tokenized products within the crypto community. By offering both yield and ownership through its stablecoin and governance token, Usual has become an attractive option for crypto investors seeking on-chain yield opportunities.
Overall, the success of Hashnote’s USYC and BlackRock’s BUIDL tokens in the tokenized Treasuries market highlights the evolving landscape of DeFi and tokenized products in the crypto industry. As more investors seek yield-generating stablecoins backed by tokenized assets, the market for these products is likely to continue to grow. The integration of tokenized products with DeFi applications, such as Usual’s partnership with Usual, has proven to be a successful strategy for driving adoption and scalability in the market.
