Noble and Hashnote Partner to Bring Interest-Bearing Fund to Cosmos
Financial technology provider Noble has teamed up with Hashnote to introduce the asset management firm’s products to the Cosmos blockchain ecosystem. The first product launched is USYC, an interest-bearing fund that offers 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.
Integrating Across 80+ Cosmos Chains
Set for integration across over 80 Cosmos chains, USYC aims to provide the blockchain world’s first compliant, liquid, and seamlessly interoperable real-world asset (RWA) that users can employ for various DeFi services.
Unlocking Institutional-Grade Financial Vehicles
By utilizing Noble’s specialized issuance platform, Hashnote gains a bridge to inject institutional-grade financial vehicles into the Cosmos landscape enabled by rapid composability.
The Power of IBC Protocol
Noble Founder Jelena Djuric believes that this initiative will showcase the power of the IBC protocol in making real-world assets natively interoperable.
Accessing the Cosmos Decentralized Network
Noble provides asset originators like Hashnote with a launchpad to unlock the functionality and seamless cross-chain potential of the Cosmos decentralized network for mainstream RWAs.
The USYC Token
Accessible through the USYC token, Hashnote’s fund product invests in overnight money markets used by the U.S. Treasury and other institutions. 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 and transparency for easy composability,” says Hashnote CEO Leo Mizuhara.
Advantages of USYC
By representing fund shares on-chain, USYC offers advantages over traditional funds, including instant access with no lock-up periods. It also provides fixed income exposure denominated in USD Coin (USDC) that can be seamlessly moved between Cosmos apps.
Interoperability Throughout Cosmos
With native USDC integration, USYC can be used as collateral across DeFi protocols, within trading pairs, lending platforms, savings vehicles, and more. This opens up a wealth of potential applications within the Cosmos ecosystem.
Bringing Yield-Bearing Tokens to Multi-Chain Future
Hashnote CEO Leo Mizuhara sees bringing USYC onto Cosmos as the first step in having a consistent fully compliant yield-bearing token usable across protocols in a multi-chain future.
Onboarding Mainstream Investors
The ability to transmit institutional-grade products throughout Cosmos with full compliance may attract mainstream investors. USYC offers familiar fixed income exposure combined with the programmability advantages of crypto networks.
Gateway for Traditional Players
By guaranteeing redemptions in one day or less, Hashnote addresses volatility concerns that typically deter corporates and traditional players from engaging in digital asset markets.
Closing Thoughts: Whetting Investor Appetites for Compliant RWAs
As pioneers in leveraging Noble’s issuance platform for institutional DeFi opportunities, Hashnote aims to create interest among investors for further compliant and transparent RWAs built on the interoperability of the Cosmos network.
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