Deribit recently made an exciting announcement regarding the introduction of the US Yield Coin (USYC) from Hashnote. This new offering serves as a yield-bearing cross-margin collateral option, presenting traders with a reliable and adaptable choice for collateral that also generates daily yield. The USYC is an ERC-20 token backed by reverse repurchase agreements on U.S. Government Securities, ensuring a secure foundation for users.
One key aspect to note is that the assets backing USYC are held in a segregated account at the Bank of New York Mellon. This setup guarantees compliance with the regulatory standards set forth by the CFTC and CIMA, providing traders with peace of mind when utilizing this collateral option on Deribit’s platform.
Luuk Strijers, the CEO of Deribit, underlined the significance of this addition by highlighting how it enables users to leverage collateral that not only offers passive returns but also helps in managing risks associated with derivatives trading. While USYC differs from traditional stablecoins by not being directly pegged to the U.S. dollar, its value is projected to remain relatively stable and see gradual growth over time. This growth is contingent upon the underlying assets continuing to yield returns and maintaining stability.
Overall, the introduction of USYC on Deribit’s platform opens up new opportunities for traders to diversify their collateral options and potentially enhance their trading strategies with a yield-bearing asset that prioritizes security and compliance in the crypto industry.
