This step taken by Bitget with BGUSD shows that crypto investment products can be based not only on speculation but also on regular and transparent earning models. In particular, the meeting of traditional financial assets with blockchain technology serves as a bridge that will increase the confidence of both institutional investors and individual users.
Such rapid growth of yielding digital assets and the parallel development of regulatory frameworks may pave the way for the emergence of a new sub-sector such as “crypto fixed-income products” in the coming period.
Yielding Crypto Asset Era with BGUSD
While tokenization of real-world assets is increasingly gaining interest in the crypto world, global crypto exchange Bitget has also taken a strong step into this race. The company has launched its new digital product BGUSD, which provides yield and is supported by real-world assets. However, BGUSD creates its own category, unlike traditional stablecoins.
What is BGUSD?
According to Bitget CEO Gracy Chen, BGUSD is not a classic stablecoin or security. Instead, it is positioned as a digital asset certificate that provides returns, specific to the platform. In other words, users can both protect their crypto assets and earn regular returns.
BGUSD holders can earn a 4% annual return as long as they keep their assets on the Bitget platform. This return is reflected in users’ spot wallets daily. While the asset is purchased with USDC, it can be cashed out as USDC if requested.
Where Does the Return Come From?
The return offered by BGUSD is not random or speculative. Bitget provides this return through regulated, tokenized financial instruments such as US Treasury bonds and high-quality money market funds. Gracy Chen states that this process is carried out in collaboration with institutional asset tokenization firms such as Superstate.
This article will also attract your attention: Saylor: “Publishing Onchain Proof of Reserves is Risky for Institutional Security”
Transparency and Reserve Assurance
“Transparency”, one of the most criticized issues in the crypto world, is among Bitget’s priorities. Chen says that efforts are underway to have the underlying assets of BGUSD regularly audited by independent third parties. In addition, the company directly deals with a reserve pool of hard digital assets like USDC to maintain liquidity.
Neither Stablecoin Nor Security
Bitget describes BGUSD as a genuine digital yield instrument, not a legal stablecoin or security. As such, they emphasize that they will only offer the product in regions that allow legal digital asset transactions.
Yielding Stablecoins Explode
Bitget’s BGUSD move coincides with a significant upward trend in the crypto sector. According to Pendle data, the yielding stablecoin market has grown from $1.5 billion in early 2024 to $11 billion as of May, representing 4.5% of the total stablecoin market.
This growth cannot be explained solely by market interest. Regulatory advances in the U.S. are also playing a major role. For example, the SEC’s approval of Figure Markets’ interest-bearing stablecoin was recorded as the first official approval in this area. In addition, regulatory proposals such as the STABLE Act and the GENIUS initiative are helping to create a more solid foundation in the stablecoin space in the US.
Click now for last-minute cryptocurrency news.
Ahmet Bedirhan Arvas 