Deribit Launches US Yield Coin (USYC) as New Yield-Bearing Cross-Margin Collateral Option

Deribit, a cryptocurrency exchange, has introduced a new yield-bearing cross-margin collateral option called the US Yield Coin (USYC). Developed by Hashnote, USYC is an ERC-20 token backed by reverse repurchase agreements on U.S. Government Securities. This innovative collateral option provides traders with stability and flexibility, along with daily yield generation. The assets underlying USYC are held in a segregated account at Bank of New York Mellon, ensuring compliance with relevant regulations set by the CFTC and CIMA. Deribit CEO Luuk Strijers pointed out that this addition allows users to utilize collateral that offers passive returns while managing risk in derivatives trading. Although USYC does not have a direct peg to the U.S. dollar like most stablecoins, its value is expected to remain relatively stable and gradually increase over time, as long as the underlying assets continue to yield returns and maintain stability.