Blockchain project Noble has partnered with asset manager Hashnote to introduce a tokenized real-world asset product on Cosmos.
The product of this collaboration is USYC, a short-term return fund product from Hashnote. USYC, a token to be issued on the Noble blockchain, will provide investors with exposure to short-term securities, including US government bonds.
Noble is a blockchain widely known as the original issuer of Circle’s USDC stablecoin for the Cosmos ecosystem. On the other hand, Hashnote – backed by investors like DRW Holdings and Cumberland – is an asset manager offering management strategies in crypto and real assets.
Noble wants to tap into the RWA niche on Cosmos with the USYC rollout. The risk-weighted assets market is still in its infancy, but it is growing rapidly. Tokenized securities in particular have seen rapid increases in value over the past year, with the market size estimated at over $500 million, according to data from Dune.
Cosmos is an ecosystem of more than 80 application-specific blockchains – such as Cosmos Hub, Osmosis, Injective, Noble and several others – that have a combined market capitalization of more than $45 billion. These blockchains can communicate with each other via the Inter-Blockchain Communication Protocol.
USYC’s potential applications
As the first cross-chain RWA on Cosmos, USYC is expected to be used in a wide range of applications, including as collateral in DeFi apps across the Cosmos ecosystem – according to a statement. “This initiative will demonstrate the power of the IBC protocol in making real-world assets natively interoperable,” said Noble CEO and co-founder Jelena Djuric.
According to Noble, USYC will have a “T+1 repayment guarantee.” This refers to the promise that an investment can be redeemed (sold back to the issuing entity) one business day after the transaction date.