The tokenized bond market has experienced a significant shift with Hashnote’s USYC token, which has increased its market value fivefold, surpassing $1.2 billion.
USYC Tops the Market
Since April, USYC has outperformed the $450 million BUIDL token launched by BlackRock and tokenization firm Securitize, marking it as the leading product.
USYC is the token of the Hashnote International Short Duration Yield Fund. According to the company’s website, USYC invests in U.S. government-backed securities and reverse repo agreements on Treasury bills held at Bank of New York Mellon.
DeFi and Traditional Finance
Hashnote’s rapid growth highlights the importance of integrating tokenized products with decentralized finance (DeFi) applications and presenting tokens as building blocks for other products. Additionally, it reflects the increasing interest of crypto investors in yield-generating stablecoins backed by a growing number of tokenized products.
USYC has significantly benefited from the rapid rise of the new DeFi protocol Usual and the USD0 stablecoin, which is primarily supported by USYC. The protocol plans to add more real-world assets to its reserves in the future.
USD0 stablecoin has raised $1.3 billion in recent months as crypto investors follow on-chain yield opportunities. Moreover, the airdrop of Usual’s governance token, USUAL, and its listing on Binance led to a noticeable increase in the token’s value.
BlackRock’s BUIDL token also showed rapid growth earlier this year with the support of the Ondo Finance platform.
The rise of USYC in the market underscores the significance of integrating tokenized Treasury products with DeFi and supporting stablecoins with various assets.
