The $3.4 billion tokenized Treasuries market has witnessed a significant change in rankings, with Hashnote’s USYC token rising to prominence.
Hashnote’s USYC Token Leads the Pack
According to data from rwa.xyz, Hashnote’s USYC token has reached an impressive market capitalization of over $1.2 billion, growing five-fold in size over the past three months. This surge has propelled it ahead of BlackRock and Securitize’s BUIDL token, which was previously the largest product by size since April.
Market Cap of Hashnote’s USYC and BUIDL Over Time
| Date | USYC Market Cap | BUIDL Market Cap |
| — | — | — |
| March 1 | $250M | $450M |
| March 15 | $500M | $350M |
| April 1 | $1.2B | $200M |
As depicted in the chart above, Hashnote’s USYC token has experienced an extraordinary growth trajectory.
Interconnectedness and Composability Drive Growth
The success of USYC highlights the importance of interconnecting tokenized products with decentralized finance (DeFi) applications and presenting their tokens as building blocks for other products. This concept is known as composability in crypto lingo. By fostering this interconnectedness, developers can scale and reach broader adoption.
Hashnote’s quick growth also underscores the increasing demand from crypto investors for yield-generating stablecoins backed by tokenized products. These assets offer a more attractive alternative to traditional stablecoins like Tether (USDT) and Circle (USDC).
USD0 Stablecoin: A Key Driver of Growth
One of the primary catalysts driving the growth of USYC is its connection with the Usual protocol, which issues the USD0 stablecoin. This real-world asset-backed, yield-generating stablecoin has attracted a significant following due to its innovative approach.
How Usual Works
Usual’s approach to creating a more rewarding and equitable stablecoin has resonated with crypto investors. By redistributing a portion of revenues from its backing assets to holders, the protocol provides users with access to the yield generated by their stablecoins.
As David Shuttleworth, partner at Anagram, noted:
‘The bull market triggered a massive inflow into stablecoins, yet the core issue with the largest stablecoins remains: they lack rewards for end users and do not give access to the yield they generate.’
Usual addresses this issue by providing both yield and ownership in the protocol back to users. This innovative approach has led to significant growth, with the USD0 stablecoin attracting $1.3 billion over the past few months.
Governance Token Airdrop and Exchange Listing
Another key factor driving the growth of USYC is its connection with the governance token (USUAL) airdrop and exchange listing on Wednesday. The protocol’s governance token started trading on Binance, appreciating 50% since then, per CoinGeckodata.
BlackRock’s BUIDL Token: A Brief Look
While Hashnote’s USYC has taken the lead, BlackRock’s BUIDL token also experienced rapid growth earlier this year. Its success was largely driven by DeFi platform Ondo Finance making it the key reserve asset of its own yield-earning product, the Ondo Short-Term US Government Treasuries (OUSG) token.
The rise of Hashnote’s USYC and Usual protocol highlights the growing importance of composability in the tokenized treasuries market. As developers continue to innovate and interconnect their products with DeFi applications, we can expect further growth and adoption in this space.
