Solayer and OpenEden Launch Yield-Bearing Stablecoin sUSD on Solana

Solayer and OpenEden Launch Yield-Bearing Stablecoin sUSD on Solana

On October 28, Solayer and OpenEden made headlines with the announcement of sUSD, a groundbreaking yield-bearing stablecoin backed by United States Treasury bills. This pioneering stablecoin is the first of several tokenized real-world assets (RWAs) that Solayer plans to unveil on the Solana blockchain.

Partnership and Objectives

Solayer, a restaking protocol based on Solana, has joined forces with OpenEden, a leader in RWA tokenization, to introduce sUSD. This stablecoin makes it easier for individuals to access tokenized real-world assets, allowing participation with as little as $5.

How sUSD Works

The sUSD protocol functions as a request for quote (RFQ) marketplace, enabling users to deposit USD Coin (USDC) in exchange for tokenized RWAs, which in turn allows them to receive sUSD. This mechanism simplifies the process of obtaining what Solayer describes as a liquid RWA token (LRT).

Solayer's Impressive Track Record

According to Solayer’s website, the protocol has a substantial restaked total value locked (TVL) of nearly $300 million. Restaking permits users to leverage already-staked tokens as collateral with a validator, providing access to additional protocols.

Market Predictions for Tokenized RWAs

Significant growth is anticipated in the tokenized RWA sector, with projections estimating a 50-fold increase by 2030. Notable financial institutions and consulting firms, as compiled in a Tren Finance research report, support this optimistic outlook.

Colin Butler, Polygon’s global head of institutional capital, emphasizes the opportunity presented by RWAs, voicing that these assets—including tokenized claims on financial instruments, commodities, or art—represent a staggering $30-trillion market.

Stablecoins as Pioneers in RWA Tokenization

Currently, stablecoins dominate the landscape of tokenized RWAs. However, there is an increasing appetite for products that focus on tokenizing highly liquid and yield-bearing assets such as US Treasury bills.

Leading Players in the Stablecoin Market

The largest stablecoins by assets under management (AUM) include the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin OnChain US Government Money Fund (FOBXX), boasting AUMs of approximately $520 million and $440 million respectively.

Conclusion

The launch of sUSD by Solayer and OpenEden marks a significant step in the integration of tokenized real-world assets on the Solana blockchain. With the ongoing interest toward yield-bearing assets, sUSD is poised to facilitate greater access and participation in this evolving financial landscape.