Hashnote and Paxos Forge Alliance for Enhanced Yield-Bearing Stablecoin Offering

Hashnote, backed by Cumberland and DRW, joins forces with Paxos to integrate PayPal USD (PYUSD) into their yield-bearing USYC token, offering risk-free rate returns backed by US Treasury investments. This collaboration enables seamless conversion between USYC and PYUSD through a two-way atomic settlement process, making idle stablecoins more productive while providing liquidity for large institutions. The partnership between Hashnote and Paxos emphasizes their shared commitment to cryptocurrencies within a regulatory framework, ensuring customer protection globally.

Hashnote and Paxos Forge Strategic Alliance to Enhance Yield-Bearing Stablecoin Offering

Introduction

In a groundbreaking collaboration, Hashnote and Paxos join forces to revolutionize the digital asset space. Hashnote, the pioneering on-chain first digital asset manager, and Paxos, the leading regulated blockchain infrastructure and tokenization provider, have entered into a strategic partnership to address the evolving needs of market makers, traders, and institutions.

Product Integration: USYC and PayPal USD Interoperability

The centerpiece of this partnership lies in the seamless integration of the Hashnote yield-bearing US Dollar Coin (USYC) with PayPal USD (PYUSD), a stablecoin issued by Paxos. Through an innovative two-way atomic settlement process, this collaboration enables the frictionless conversion between USYC and PYUSD. This technological advancement eliminates time-consuming and costly intermediaries, allowing for instant settlement and maximizing investment efficiency.

Enhanced Yield and Reduced Risk

USYC continually generates yield through investments in US Treasury Bills, repurchase (repo), and reverse repurchase (reverse-repo) agreements. This approach ensures short-term, risk-free returns while leveraging the rapid speed, transparency, and composability of on-chain transactions. Moreover, Hashnote's stringent regulatory compliance mitigates potential risks associated with protocol, custody, regulations, and credit.

Accessibility and Liquidity

USYC is accessible to eligible individuals and institutions outside the United States, with a minimum investment threshold of $100,000. US investors can gain exposure to USYC through the Hashnote Feeder Fund. The partnership with Paxos significantly increases the cap on immediate minting and redemption, guaranteeing ample liquidity to meet the demands of even the most substantial institutions.

Regulatory Framework: Compliance and Security

Paxos Trust Company, the issuer of PYUSD, operates under the strict regulatory oversight of the New York State Department of Financial Services (NYDFS). Hashnote is registered as a Commodity Pool Operator (CPO) with the U.S. Commodity Futures Trading Commission (CFTC), and its fund is registered as a mutual fund with the Cayman Islands Monetary Authority (CIMA). This robust regulatory framework ensures adherence to stringent financial standards and protects the interests of customers worldwide.

Benefits of the Collaboration

This partnership between Paxos and Hashnote brings numerous advantages to the market:

• Increased Value: Hashnote's yield-bearing USYC allows investors to optimize returns on their stablecoin holdings.
• Reduced Risk: Hashnote's regulated and compliant approach minimizes the risks associated with digital asset investments.
• Enhanced Liquidity: The ability to seamlessly convert between USYC and PYUSD ensures abundant liquidity for market makers, traders, and institutions.
• Regulatory Compliance: The partnership's strict adherence to regulatory frameworks provides peace of mind to customers.
• Global Accessibility: USYC is available to eligible investors outside the United States, making it a globally accessible investment vehicle.

Conclusion

The strategic alliance between Hashnote and Paxos marks a significant milestone in the evolution of digital asset management. By seamlessly integrating the yield-bearing USYC with the regulated PYUSD, this partnership empowers market participants to maximize returns, reduce risk, enhance liquidity, conform to stringent regulatory requirements, and access a global marketplace. This collaboration sets a new standard for innovation and excellence in the digital asset industry, paving the way for a more secure, efficient, and rewarding financial landscape.