Bitget Launches BGUSD Yield-Bearing Stable Asset With 4% Annual Return

Bitget, a prominent cryptocurrency exchange, has launched BGUSD, a yield-bearing stable asset backed by tokenized real-world assets. This new product offers an annual yield of 4%, which is credited daily to users’ spot accounts. Subscriptions to BGUSD can be made using either USDC or USDT, and the asset is redeemable back to USDC on demand. The yield is derived from a basket of tokenized instruments, including US Treasury bills and high-grade money-market funds, managed via partnerships with regulated institutional tokenization providers such as Superstate.

The structure of BGUSD is designed to reduce exposure to crypto volatility while delivering returns through traditional financial instruments. This approach aims to provide users with a stable and reliable investment option within the volatile crypto market. Bitget CEO Gracy Chen emphasized that BGUSD is distinct from stablecoins and securities, functioning as a yield-bearing stable asset certificate exclusive to the Bitget platform. Chen also clarified that BGUSD does not fall under the definitions of a stablecoin or a security and is not subject to specific licensing requirements.

In response to questions about transparency, Chen stated 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 also explained how Bitget maintains liquidity for users who want to redeem BGUSD, noting that the company directly manages the reserve pool, which includes stable, on-hand assets like USDC.

Bitget’s entry into the yield-bearing stablecoin market comes at a time when this asset class has seen significant growth. The asset class has surged to $11 billion, climbing from $1.5 billion at the start of 2024 to $11 billion as of May 21. This growth is attributed to increasing regulatory clarity in the United States. The US Securities and Exchange Commission (SEC) approved exchange operator Figure Markets’ interest-bearing stablecoin, making it the first to receive US approval for a yield-bearing stablecoin. Additionally, 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) signal a positive direction for stablecoins in the US.

Bitget’s move into yield-bearing stablecoins is a strategic response to the growing demand for stable and reliable investment options within the crypto market. By offering BGUSD, Bitget aims to provide users with a yield-bearing stable asset that is backed by real-world assets and managed through partnerships with regulated institutional providers. This approach not only reduces exposure to crypto volatility but also delivers returns through traditional financial instruments, making it an attractive option for investors seeking stability and reliability in their crypto investments.