Bitget launches 'stable' asset that generates yield from low-risk RWAs

Cryptocurrency exchange Bitget said Tuesday the company is launching a "yield-bearing stable asset certificate" which generates returns from tokenized real-world assets.

The new digital asset, called BGUSD, offers a minimum annualized yield of 4%, Bitget said in a statement. BGUSD's yield come from a low-risk "basket of tier 1 tokenized real-world assets, including high-grade money market funds and tokenized US Treasury products," the company also said. The company is working with multiple tokenization service providers, including Superstate, according to the statement.

"With BGUSD, we are delivering a solution that bridges the best of both worlds: the transparency and innovation of crypto with the stability and yield opportunities traditionally found in real-world assets," said Bitget CEO Gracy Chen.

Bitget's move to create a digital asset product which provides a reliable return through the tokenization of safer, traditional financial instruments comes amid a growing trend of creating products linked to TradFi for crypto users. The real-world asset (RWA) market has grown significantly since last year, swelling to nearly $23 billion, according to recent data from RWA.xyz.

Private credit and U.S. Treasurys are the two leading real-world assets to be tokenized, also according to RWA.xyz. Other notable names in the RWA sector include Securitize and Plume Network.

"This structure positions BGUSD as a secure, yield-generating alternative within the platform, minimizing exposure to crypto market volatility while maintaining full liquidity through redemption options," Bitget said. "BGUSD is redeemable for USDC at a 1:1 ratio and can be subscribed using USDC or USDT," the company added.