DeFi Startup Hashnote Offers USYC Token Through Cryptocurrency Custody Firm Copper

According to CoinDesk, decentralized finance (DeFi) startup Hashnote is offering its yield-bearing USYC token through Copper, a cryptocurrency custody firm chaired by former U.K. Chancellor Philip Hammond. Hashnote, the first crypto startup to emerge from Web3 incubator Cumberland Labs, counts Chicago-based trading giant Cumberland as a market maker. The integration with Copper brings Hashnote's USYC token to the custody firm's clientele of around 300 large institutions and crypto trading platforms. Blockchain-based versions of U.S. Treasury bonds, yield-bearing tokens, and stablecoins have gained popularity as the trend for institution-friendly tokenization accelerates within the crypto sector. However, Hashnote CEO Leo Mizuhara believes that not all tokenized Treasury-type offerings in the market are equal. He argues that different structures matter significantly, and being in a special purpose vehicle (SPV) that owns Treasuries or an SPV that owns exchange-traded funds (ETFs) is not the same as being in a money market fund. Hashnote's USYC token is based on the reverse repo, or holding Treasury Bills overnight with a guaranteed price the next day, and offers a net yield of about 4.8%. Copper's head of sales, Michael Roberts, stated that not everyone gets access to the reverse repo window, which is mainly reserved for big banks and some broker-dealers. In the long term, Copper is working on a deeper integration where the token can persist and potentially be used as collateral.