Miami — Hashnote, the first on-chain digital asset manager backed by Cumberland and DRW, is proud to announce its strategic collaboration with Paxos, a leading regulated blockchain infrastructure and tokenization provider. This collaboration aims to meet the demands of market makers, traders, and institutions by integrating PayPal USD (PYUSD) into Hashnote’s yield-bearing USYC, fostering collateral efficiency.
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Hashnote’s innovative approach leverages cutting-edge technology to facilitate instantaneous conversion between USYC and PYUSD through a two-way atomic settlement process. This integration provides Hashnote customers with seamless access to USYC, a yield-bearing token backed by investments in US Treasury Bills, repurchase (repo), and reverse repurchase (reverse-repo) agreements.
The USYC token offers short-term, risk-free rate returns while benefiting from the advantages of rapid on-chain transaction speed, transparency, and composability.
Moreover, Hashnote’s commitment to regulatory compliance ensures that the USYC token mitigates protocol, custody, regulatory, and credit risks often associated with other token projects. While USYC is accessible to individuals and institutions outside the United States, subject to eligibility restrictions and a $100,000 minimum investment, US investors can gain exposure to USYC through the Hashnote Feeder Fund.
Boosting PayPal USD’s Collateral Efficiency
In 2023, Paxos expanded its product lineup to include PayPal USD (PYUSD), an open and programmable stablecoin backed by US dollar deposits, US treasuries, and cash equivalents.
This collaboration enables Hashnote customers to seamlessly mint and redeem USYC in and out PYUSD, transforming idle stablecoins into yield-generating assets without incurring additional risks.
The partnership between Hashnote and Paxos significantly enhances liquidity by raising the cap on immediate minting and redemption, ensuring ample liquidity even for large institutions.
Paxos Trust Company, the issuer of PYUSD, is regulated by the New York State Department of Financial Services, while 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 collaboration underscores a shared commitment to innovation, regulatory compliance, and customer-centric solutions within the cryptocurrency space, benefiting customers globally.
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About Paxos
Paxos is a leading regulated blockchain infrastructure and tokenization platform, empowering a new, open financial system for faster and more efficient operations. With prudential regulation by the NYDFS in the US and MAS in Singapore, Paxos is the issuer of regulated digital assets, including PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG). The company has raised over $540 million from prominent investors and serves leading global enterprises like PayPal, Interactive Brokers, Mastercard, and more. Learn more at Paxos.
About Hashnote
Hashnote is the world’s premier on-chain first asset manager, bridging blockchain technology with traditional finance to deliver transparent, secure, and simple on-chain investments to institutional and high-net-worth investors. With the support of DRW Holdings and Cumberland, Hashnote pioneers the future of finance, combining decades of experience in traditional finance, options trading, software engineering, and blockchain technology. Learn more at Hashnote.
