Bitget enters real-world asset race with yield-bearing BGUSD stable asset
Crypto exchange Bitget has entered the expanding market for crypto investment products with the launch of BGUSD, a yield-bearing stable asset backed by tokenized real-world assets.
The company announced that BGUSD offers an annual yield of 4%, which is credited daily to users’ spot accounts. Subscriptions to BGUSD can be made using either USDC (USDC) or USDt (USDT), and the asset is redeemable back to USDC on demand.
The company said the yield is derived from a basket of tokenized instruments, including US Treasury bills and high-grade money-market funds. “These assets are managed via partnerships with regulated institutional tokenization providers such as Superstate,” Bitget CEO Gracy Chen told Cointelegraph.
The product’s structure is designed to reduce exposure to crypto volatility while delivering returns through traditional financial instruments.
Bitget to roll out third-party attestations
In response to questions about transparency, Chen said that Bitget is preparing to roll out third-party attestations to provide visibility into BGUSD’s asset backing.
“Transparency and accountability are core principles of BGUSD’s framework,” she said. “While independent attestations are in the works, our institutional partners are already subject to rigorous audit requirements and regulatory oversight.”
Chen clarified how Bitget maintains liquidity for users who want to redeem BGUSD. The executive said Bitget directly manages the reserve pool, which includes stable, on-hand assets like USDC.
According to Chen, BGUSD does not fall under the definitions of a stablecoin or a security and is not subject to specific licensing requirements.
“It’s structured as a yield-bearing stable asset certificate that’s exclusive to the Bitget platform,” Chen told Cointelegraph.
Chen added that Bitget will limit access to BGUSD in jurisdictions where digital asset restrictions apply.
Related: Stablecoins’ dominance due to limitations of US banking — Jerald David
Yield-bearing stablecoins surge to $11 billion
Bitget’s move into yield-bearing stablecoins comes as the asset class has surged to $11 billion. According to a Pendle report, yield-bearing stablecoins climbed from $1.5 billion at the start of 2024 to $11 billion as of May 21. This represents 4.5% of the entire stablecoin market.
The growth of yield-bearing stablecoins is attributed to increasing regulatory clarity in the United States under President Donald Trump’s administration.
According to a Feb. 18 filing, the US Securities and Exchange Commission (SEC) approved exchange operator Figure Markets’ interest-bearing stablecoin. This made the company the first to receive US approval for a yield-bearing stablecoin.
Apart from a favorable response from the SEC, proposed bills like the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) also signal a positive direction for stablecoins in the US.
Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs: Inside story
Rowland Marcus Andrade was sentenced to seven years in prison for making the cryptocurrency AML Bitcoin, which defrauded investors out of $10 million.
The Bank of Korea has also renamed its CBDC research and development teams to reflect their focus as practical business departments.
One year on, how’s Keir Starmer’s government going? We’ve put together an end-of-term report with the help of pollster YouGov.
First, here are the government’s approval ratings – drifting downwards.
It didn’t start particularly high. There has never been a honeymoon.
But here is the big change. Last year’s Labour voters now disapprove of their own government. That wasn’t true at the start – but is now.
And remember, it’s easier to keep your existing voter coalition together than to get new ones from elsewhere.
So we have looked at where voters who backed Labour last year have gone now.
YouGov’s last mega poll shows half of Labour voters last year – 51% – say they would vote for them again if an election was held tomorrow.
Around one in five (19%) say they don’t know who they’d vote for – or wouldn’t vote.
But Labour are also leaking votes to the Lib Dems, Greens and Reform.
These are the main reasons why.
A sense that Labour haven’t delivered on their promises is top – just above the cost of living. Some 22% say they’ve been too right-wing, with a similar number saying Labour have “made no difference”. Immigration and public services are also up there.
Now, YouGov asked people whether they think the cabinet is doing a good or a bad job, and combined the two figures together to get a net score.
John Healey and Bridget Phillipson are on top, but the big beats of Angela Rayner, Keir Starmer and Rachel Reeves bottom.
But it’s not over for Labour.
Here’s one scenario – 2024 Labour voters say they would much prefer a Labour-led government over a Conservative one.
But what about a Reform UK-led government? Well, Labour polls even better against them – just 11% of people who voted Labour in 2024 want to see them enter Number 10.
Signs of hope for Keir Starmer. But as Labour MPs head off for their summer holidays, few of their voters would give this government an A*.
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