Financial technology provider Noble has partnered with Hashnote to bring the asset management firm’s products to the Cosmos blockchain ecosystem. The first product launched is USYC, an interest-bearing fund offering tokenized returns generated from investments in short duration U.S. Treasuries.
TLDR
- Noble and Hashnote are partnering to bring Hashnote’s financial products to the Cosmos ecosystem using Noble as an asset issuance platform.
- The first product is USYC, an interest-bearing fund that invests in short-term U.S. Treasuries and offers tokenized returns.
- USYC leverages the benefits of blockchain like speed, transparency, tokenization for easy composability while eliminating many token risks.
- Noble facilitates asset interoperability on Cosmos, enabling USYC to integrate with major Cosmos chains for use cases like collateral, trading, lending, etc.
- This makes USYC the first cross-chain real-world asset in Cosmos that is liquid, compliant, interoperable and easy to use.
Set for integration across over 80 Cosmos chains, USYC is designed to provide the blockchain world’s first compliant, liquid and seamlessly interoperable real-world asset (RWA) that users can employ for a variety of DeFi services.
By tapping into Noble’s specialized issuance platform, Hashnote gains a bridge to inject institutional-grade financial vehicles into the Cosmos landscape enables by rapid composability.
Noble Founder Jelena Djuric said, “This initiative will demonstrate the power of the IBC protocol in making real world assets natively interoperable.”
For asset originators like Hashnote, Noble provides a launchpad to unlock the functionality and seamless cross-chain potentials of the Cosmos decentralized network for mainstream RWAs.
Accessible via the USYC token, Hashnote’s fund product invests in the overnight money markets used by the U.S. Treasury and other institutions to manage short-term cash. The net asset value of USYC tracks the yield of these holdings.
“USYC is designed to offer tokenized returns backed by short term U.S. government debt, leveraging blockchain’s transaction speed, transparency for easy composability,”
Hashnote CEO Leo Mizuhara said.
“This approach eliminates the majority of protocol, custody and credit risks plaguing other RWAs.”
By representing fund shares on-chain, USYC confers significant advantages over traditional funds, including instant, 24/7 access with no lock-up periods. And as the first crypto native U.S. treasury yield product, it provides fixed income exposure denominated in USD Coin (USDC) seamlessly moveable between Cosmos apps.
Native USDC integration empowers USYC’s interoperability throughout the Cosmos, unlocking a wealth of potential applications. Users can employ their yield-bearing token as collateral across DeFi protocols, within trading pairs, lending platforms, savings vehicles, and more.
For example, a user could stake USYC on Osmosis to farm rewards while benefiting from daily interest generation. Or take out a flash loan denominated in USYC on dYdX to capitalize on arbitrage opportunities.
Leo Mizuhara added, “Bringing USYC onto Cosmos via Noble is the first step in having a consistent fully compliant yield bearing token usable across protocols in a multi-chain future.”
The ability to frictionlessly transmit institutional-grade products throughout Cosmos with full compliance may provide the gateway for onboarding mainstream investors. USYC offers familiar fixed income exposure melded with the programmability advantages of crypto networks.
And by guaranteeing redemptions in one day or less, Hashnote assuages typically volatility concerns stopping corporates and traditional players from engaging digital asset markets.
As pioneers in leveraging Noble’s issuance platform to unlock institutional DeFi opportunities, this latest move sees Hashnote plant its flag at the intersection of TradFi and crypto. The productive collaboration aims to whet investor appetites for further compliant and transparent RWAs built atop Cosmos’ interoperability.
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