By
Temitope Olatunji
May 20th, 2024
The new financial product is the first cross-chain RWA in the Cosmos ecosystem, boasting high liquidity, compliance, interoperability, and user-friendly functionality.
Noble, a newly launched blockchain project, has joined forces with asset manager Hashnote to bring tokenized real-world asset (RWA) products to the Cosmos ecosystem.
In a joint press release on Wednesday, Noble and Hashnote said Noble will serve as the designated on-chain asset issuance platform for the planned innovative financial products.
USYC Guarantees T+1 Redemptions
The RWA, called USYC, is a Hashnote Short Duration Yield Fund offering designed to offer tokenized returns backed by short-term US government debt.
According to the release, USYC represents a notable advancement in the evolving realm of “real-world assets,” mitigating common risks associated with other token projects by leveraging on-chain transaction speed, transparency, and the ability to tokenize for composability.
Both companies said the product will be committed to a T+1 redemptions, ensuring swift and reliable transactions.
Noble, distinguished as the purpose-built Cosmos blockchain facilitating interoperability protocols, boasts over $97 million in USDC since its launch in September 2023.
The protocol is primarily known for issuing USDC on the Cosmos network. So far, USDC on Noble has recorded a substantial 30-day IBC transfer volume of $335 million, underlining its integral role within the Cosmos ecosystem.
The First RWA on the Cosmos Ecosystem
With its robust interoperability capabilities, Noble enables seamless integration with major Cosmos chains, including Osmosis, dYdX, Sei, Injective, Kujira, and more.
The various integrations empower USYC to be utilized across different applications, such as collateral in decentralized finance (DeFi), a trading pair, a savings vehicle, and in loans.
The new financial product is the first cross-chain RWA in Cosmos, boasting high liquidity, compliance, interoperability, and user-friendly functionality.
“Bringing USYC onto Cosmos via Noble is the first step in having a consistent, fully compliant yield-bearing token usable across protocols in a multi-chain future,” said Hashnote CEO Leo Mizuhara.
Cosmos Boasts of $45 Billion in Market Value
The project is poised to explore the realm of RWAs within the Cosmos ecosystem through the introduction of USYC. Jelena Djuric, the founder of Noble, said the collaboration with Hashnote will demonstrate the full potential of the IBC protocol in making RWAs natively interoperable.
“We are very excited to partner with Hashnote to bring reliable and liquid tokenized treasury bills on the blockchain and for the wider Cosmos ecosystem. This initiative will demonstrate the power of the IBC protocol in making real-world assets natively interoperable,” said Djuric.
The move comes as the RWA market is experiencing remarkable growth despite being at an early stage. Tokenized securities, in particular, have experienced a rapid surge in value over the past year.
According to data from Dune, the estimated market size for tokenized securities has surpassed $500 million.
Meanwhile, Cosmos is one of the prominent blockchain networks in the crypto industry, commanding a market capitalization of over $45 billion. The protocol boasts around 80 blockchain projects built on the ecosystem, including popular entities like dYdX and Osmosis.
The network has grown, with over $4 billion in transaction volume and more than 8 million unique transfers in the past 30 days.