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
Nigel Farage has successfully exploited the Commons recess to “grab the mic” and “dominate” the agenda, Harriet Harman has said.
Speaking on Sky News’ Electoral Dysfunction podcast, the Labour peer said that the Reform UK leader has been able to “get his voice heard” while government was not in “full swing”.
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Mr Farage used a speech this week to set himself, rather than Kemi Badenoch’s Tories, up as the main opposition to Sir Keir Starmer at the next election.
The prime minister responded on Thursday with a speech attacking the Clacton MP.
Baroness Harman said: “It’s slightly different between opposition and government because in government, the ministers have to be there the whole time.
“They’ve got to be putting legislation through and they kind of hold the mic.
“They can dominate the news media with the announcements they’re making and with the bills they’re introducing, and it’s quite hard for the opposition to get a hearing whilst the government is in full swing.
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‘Big cuts’ to fund other Reform UK policies
“What we used to do when we were in opposition before 1997 is that as soon as there was a bank holiday and the House was not sitting, as soon as the half-term or the summer recess, we would be on an absolute war footing and dominate the airwaves because that was our opportunity.
“And I think that’s a bit of what Farage has done this week,” Harman added.
“Basically, Farage can dominate the media agenda.”
She went on: “He’s kind of stepped forward, and he’s using this moment of the House not sitting in order to actually get his voice heard.
“It’s sensible for the opposition to take the opportunity of when the House is not sitting to kind of grab the mic and that is what Nigel Farage has done.”
But Baroness Harman said it “doesn’t seem to be what Kemi Badenoch’s doing”.
She explained that the embattled leader “doesn’t seem to be grabbing the mic like Nigel Farage has” during recess, and added that “there’s greater opportunity for the opposition”.
SEC Commissioner Hester Peirce has backed the guidance, saying it gives clarity to stakers, while her peer Caroline Crenshaw claims it ignores existing laws.
Two NYPD detectives allegedly linked to a crypto torture case in Manhattan have been placed on modified duties as the investigation unfolds, according to multiple reports.
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