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GlossaryUU.S. Treasury-backed Stablecoin

U.S. Treasury-backed Stablecoin

A digital asset backed by U.S. Treasury securities, offering yield and regulatory alignment.

What is U.S. Treasury-backed Stablecoin?

U.S. Treasury-backed stablecoins, such as Ondo’s USDY and Hashnote’s USYC, are digital assets pegged to the USD and backed by U.S. Treasury securities or repurchase agreements, functioning as tokenized money market funds. Unlike fiat-pegged stablecoins backed by cash, these offer yield to holders, appealing to investors seeking stable returns with regulatory compliance. They are used for liquidity management and as a secure store of value, particularly in institutional settings, leveraging the safety of U.S. Treasuries.

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