Hashnote's Rapid Growth Outshines BlackRock's BUIDL in Tokenized Treasury Market
Table of Contents
You might want to know
- What is driving the surge in Hashnote's USYC token?
- How does Usual's DeFi protocol impact the tokenized treasury market?
Main Topic
The tokenized Treasuries market, currently valued at $3.4 billion, has witnessed a significant shift in rankings. Over the last three months, Hashnote's USYC token has soared in market capitalization, reaching over $1.2 billion—a fivefold increase, according to data from rwa.xyz. This remarkable growth has displaced BlackRock's BUIDL, developed in collaboration with tokenization company Securitize, which had previously been the largest tokenized product since April with a valuation of $450 million.
USYC epitomizes Hashnote's International Short Duration Yield Fund, which invests in reverse repurchase agreements and U.S. Treasury securities, with custody at the Bank of New York Mellon. This rapid ascent highlights the crucial role of interconnected tokenized assets within decentralized finance (DeFi) ecosystems. The ability to use these tokens as fundamental components—or 'composability'—is integral to achieving broader user adoption and scaling reach. Such dynamics underscore the growing interest among crypto investors in yield-enhancing stablecoins, which are progressively tied to tokenized assets.
For instance, Hashnote's growth is fueled significantly by the burgeoning DeFi protocol Usual and its innovative, asset-backed stablecoin, USD0. As it aims to rival centralized stablecoins like Tether's USDT and Circle’s USDC, Usual offers the redistribution of revenue from backing assets to its users. Currently, USD0 is predominantly supported by USYC, though the protocol plans to diversify its backed assets in the future, including the incorporation of Ethena's USDtb, based on BUIDL.
David Shuttleworth, partner at Anagram, noted a critical issue with major stablecoins: they fail to deliver rewards or equity access to end-users despite the yield they generate. Usual's distinct advantage lies in returning profits and ownership back to its community, rendering it an attractive alternative.
Fuelled by crypto investors seeking on-chain yield opportunities, Usual's protocol-including the USD0 stablecoin-amassed $1.3 billion recently. A major growth driver was the airdrop and subsequent exchange listing of the protocol's governance token, USUAL, which has been trading on Binance since Wednesday. Following this listing, USUAL has outperformed the broader crypto market with a 50% appreciation, as reported by CoinGecko.
Earlier in the year, BlackRock's BUIDL also witnessed rapid expansion, with its inclusion as a core reserve within DeFi platform Ondo Finance's yield-earning product, the Ondo Short-Term US Government Treasuries (OUSG) token.
Key Insights Table
| Aspect | Description |
|---|---|
| Hashnote's USYC Growth | Increased fivefold, reaching $1.2 billion in market cap. |
| Usual's DeFi Impact | Promotes asset-backed stablecoins like USD0, redistributing yields to users. |
Afterwards...
Moving forward, the interconnection between tokenized assets and the DeFi space is expected to play a pivotal role in future financial innovations. Continuing to leverage the principles of composability and user-centric governance could pave the way for new financial models that not only enhance yield but also democratize access to financial benefits and equity. As technology evolves, it will be fascinating to see how these market dynamics continue to evolve and shape the broader digital financial landscape.