Crypto exchange Bitget is entering the competitive realm of real-world asset (RWA)-backed products with the launch of BGUSD. This will be a yield-bearing stable asset that will offer daily returns while minimizing exposure to crypto market volatility. BGUSD delivers an annual yield of 4%, distributed daily to users’ spot accounts. Subscriptions can be made using stablecoins USDC or USDT, with redemption available on demand back to USDC, according to Bitget CEO Gracy Chen.
A distinct asset class, not a traditional stablecoin
Speaking to Cointelegraph, Bitget CEO Chen emphasized that BGUSD does not fall under the traditional classifications of either a stablecoin or a security. Instead, she described it as a “yield-bearing stable asset certificate” that is exclusive to the Bitget platform and structured to remain outside the scope of conventional licensing requirements.
The yield for BGUSD is generated through a basket of tokenized traditional financial instruments—including U.S. Treasury bills and high-grade money market funds—managed through institutional partners like Superstate, a regulated tokenization provider.
“Our aim is to provide a low-volatility option that still delivers real yield,” Chen said, noting that Bitget directly manages a reserve pool of liquid assets such as USDC to maintain user liquidity for redemptions.
Transparency measures and regulatory positioning
To address transparency concerns, Chen confirmed that third-party attestations are in development to offer clear insights into BGUSD’s asset backing. While these are forthcoming, she pointed out that existing institutional partners are already subject to strict regulatory audits and oversight. Transparency and accountability are core principles of BGUSD’s framework, Chen asserted.
The platform will also restrict access to BGUSD in jurisdictions with digital asset limitations, aligning with compliance requirements across different regulatory environments.
Yield-bearing stablecoins gain ground
Bitget’s entry into the RWA-backed asset space coincides with explosive growth in the yield-bearing stablecoin sector. According to a May 21 report by Pendle, the market has expanded from $1.5 billion at the start of 2024 to $11 billion, now comprising 4.5% of the total stablecoin market.
This surge is fueled by growing institutional interest and a more favorable regulatory landscape in the United States. The SEC’s approval of Figure Markets’ yield-bearing stablecoin earlier this year marked a significant milestone, making it the first such product to gain regulatory clearance in the U.S.
Further momentum is expected from pending legislation such as the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, both of which aim to create a more defined and compliant framework for these emerging financial products.
