Bitget CEO Gracy Chen told Cointelegraph that BGUSD is distinct from stablecoins and securities and functions as a yield-bearing stable asset certificate.
Exchange of cryptocurrency Bitget has entered the growing market for crypto investment products with the introduction of BGUSD.
This stable asset generates a yield and is supported by tokenized real-world assets.
The company has disclosed that BGUSD provides a daily credit to users’ spot accounts, with an annual yield of 4%.
The asset is redeemable and returned to USDC on demand, and subscriptions to BGUSD can be made using USDC or USDt.
According to the company, the yield is derived from a basket of tokenized instruments, such as high-grade money-market funds and US Treasury notes.
“These assets are managed through partnerships with regulated institutional tokenization providers, such as Superstate,” Bitget CEO Gracy Chen stated in an interview with Cointelegraph.
The product’s structure is intended to mitigate crypto volatility exposure while providing returns through conventional financial instruments.
Bitget Will Implement Third-Party Attestations
Chen stated that Bitget is implementing third-party attestations to enhance the transparency of BGUSD’s asset underpinning in response to inquiries regarding openness.
“BGUSD’s framework is founded on the fundamental principles of transparency and accountability,” she stated.
“Our institutional partners are already subject to rigorous audit requirements and regulatory oversight, and independent attestations are currently being completed.”
Chen elaborated on the method by which Bitget ensures liquidity for users who wish to redeem BGUSD.
The executive stated that Bitget is responsible for directly managing the reserve fund, which comprises stable, on-hand assets such as USDC.
According to Chen, BGUSD is not classified as a security or stablecoin and is not subject to specific licensing requirements.
Chen informed Cointelegraph that the certificate is designed as a stable asset certificate that generates a yield and is exclusively available on the Bitget platform.
Chen further stated that Bitget will restrict access to BGUSD in jurisdictions where digital asset restrictions are in effect.
Stablecoins With Returns Rise To $11 Billion
As the asset class has experienced a significant increase to $11 billion, Bitget has transitioned to yield-bearing stablecoins.
As of May 21, yield-bearing stablecoins had increased from $1.5 billion at the beginning of 2024 to $11 billion, as a Pendle report indicates.
This accounts for 4.5% of the stablecoin market as a whole.
The United States’ regulatory clarity has improved under President Donald Trump’s administration, contributing to yield-bearing stablecoins’ growth.
The interest-bearing stablecoin of exchange operator Figure Markets was certified by the US Securities and Exchange Commission (SEC) in a filing on February 18.
This resulted in the company becoming the first to receive US sanction for a stablecoin that bears a yield.
In addition to the SEC’s favorable response, the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act are proposed legislation that also indicates a positive trajectory for stablecoins in the United States.
