blackrock coin ($BUIDL)

Some thoughts on the "Tokenized deposit - stablecoin loophole"

When asked about tokenized deposits, I am generally bearish on them as a balance sheet expander for the broader banking system.
(aka, USD M2 stays constant, a bank with tokenized deposits might grow taking deposits from other banks, but most likely they will result on cannibalization of existing bank deposits, with moderate upside)

The reason is that tokenized deposits are permissioned assets. The most successful permissioned asset is BUIDL and it has ~60 holders!

However, tokenized deposits can be used to back a stablecoin. In many banking discussions we've had in recent months, this is a very interesting idea and a pattern is emerging.

1) Tokenized deposits for other stablecoins
This is where a bank (call it JPM for illustration purposes), offers tokenized deposits to stablecoin issuers. Albeit useful for the stablecoin issuer, this has limited value for the bank issuing the tokenized deposit. This deposit is callable at any time by the issuer, for example in the case that another bank offers better yield. This is akin to "brokered deposits" and liquidity requirements and ALCOs don't love lending long term to such deposits.
This makes them less useful for lending and, hence, less profitable for banks

2) Tokenized deposits backing a bank issued stablecoin - aka the "tokenized deposit stablecoin loophole"
In this case, the bank itself issues a stablecoin. Pursuant to GENIUS Act, § 4(a)(1)(A)(ii) (2025), the bank can hold "funds held as demand deposits...at an insured depository institution"
In this case, the I would argue that these deposits are no longer "brokered deposits", because the issuer can commit to holding 100% of deposits in such bank.

In case (2), the liquidity profile of the deposit would be a look through of the holders of the stablecoins, which at scale will more resemble a retail deposit, which can definitely used to perform lending with both credit risk and maturity transformation. For example, in two existential crisis for stablecoins, Circle's SVB credit risk event and Paxos' BUSD Wells Notice and forced wind down, 60-day redemptions were only ~30%.

I think more and more banks will use the "tokenized deposit-stablecoin loophole" to combine the profitability of bank deposits with the access and growth of permissionless stablecoins. If this plays out, lots of interesting scenarios - for another thread.

Exciting times!

🚨🆙 The AUM of tokenized investment funds is at an all-time high of $7.7 billion.

Asset managers are increasingly interested in tokenizing their fund products and bringing them onchain.

The biggest tokenized fund by AUM: @BlackRock BUIDL, powered by @Securitize & @wormhole.

Trillions in RWAs are moving to the financial internet.

In fact, the tokenized treasury market is up 860% since the day that Securitize & BlackRock launched BUIDL on Ethereum.

With that momentum, @Etherealize_io released a new report outlining why Wall Street is ready to move onchain, and why it should be done through native tokenization.

The tipping point for global finance has arrived.

Ethena is holding $1.12B (50%) of BUIDL's supply as USDtb's collateral.

Had some thoughts on @Lombard_Finance’s recent partnership with @megaeth_labs as their primary BTC partner.

This is pretty yuge, like yugeee if you really think about it.

First, on MegaETH's trajectory:

Unlike most ecosystems, MegaETH is building for mainstream adoption beyond the DeFi-native crowd.
With @0xMegaMafia’s cohort of apps, it sets the ecosystem on a differentiated path carving an addressable market + audience incumbents haven’t touched.

That’s how category leaders emerge imo.

And with that, any ecosystem-native establishment here could spark massive second-order effects in distribution + adoption.

This is corroborated with @ethena_labs involvement with MegaETH’s native stablecoin $USDm, backed by @BlackRock’s $BUIDL tokenised treasuries, where it serves as a clear sign of institutional confidence + formalisation.

Not surprising, $USDm is strategically more than a 'stablecoin':

🔸Yield covers sequencer costs → lowers transaction fees
🔸Integrates across MegaETH → reduces reliance on tx fees as the core revenue model

This is literally DeFi innovation directly wired into chain mechanics to deliver an unmatched UX which is pretty based.

Now back to @Lombard_Finance powering native BTC-Fi on MegaETH:

Lombard's positioning isn't just another ecosystem participant, but as a category-defining protocol → similar to what Ethena did for yield-bearing stablecoins.
This isn't a coincidence of course. Lombard has proven itself with stellar scaled adoption backed by institutional-grade security & transparent PoRs.

It’s exactly the type of enterprise-grade primitive MegaETH needs to deliver on its vision.

And from what I see, the partnership is dual-beneficial:

1⃣For MegaETH → Secures BTC-Fi infra with the sector leader, strengthening its asset-layer credibility.

2⃣For Lombard → Gains native distribution + ecosystem-wide reinforcement, bolstering $LBTC fundamentals.

*Note: Nothing official has been communicated yet on what the design + utility of the native BTC-Fi asset will be.

--------

Final Thoughts:

This partnership goes way more than just an integration, i’s a strategic alignment between an ecosystem gunning for category leadership.
This itself, represents another strong vote of confidence in cementing dominance within the Bitcoin economy.

For Lombard, this marks a pivotal shift in its broader role: scaling into the vast Bitcoin capital markets.

And imo, this is only the beginning.

That's all, thanks for reading if you'd made it to the end~

贝莱德宣布，计划将把旗下拥有现实世界资产和股票的基金进行代币化，并将其置于链上。Ondo Finance 此前与贝莱德合作，通过 Securitize 平台推出了代币化美国国债基金 BUIDL，Ondo Finance 是 BUIDL 的最大持有者。
RWA板块会被整体带动，跟着华尔街走准没错！

The Next Evolution of Stablecoins !

Built by the creator of stablecoins, @stbl_official rethinks the model with a 3-token architecture that separates yield from principal.

-> USST → stablecoin backed by tokenized treasuries (Ondo USDY, Blackrock BUIDL, Franklin BENJI & more)
-> YLD → NFT capturing the yield stream
-> STBL → governance token where fees and revenue accrue

This design means you can mint USST without sacrificing yield, while YLD holders capture the income from RWAs. Redeem by burning both, unlocking collateral.

Audited by Nethermind & Cyfrin, live in beta on with multi-chain support (EVM + Solana), governance, staking, and top-tier listings next.

It’s a more flexible, transparent stablecoin standard built for institutions and DeFi alike. $STBL

ICYMI: @Securitize is the #17 business on @ethereum, based on TVL.

BUIDL = tokenized fund
Securitize = issuer
Ethereum = global platform

pump to top 40 soon methinks

Not all tokenized US Treasuries are the same. Here’s a non-exhaustive list of areas investors should care about:

1. Cost
• Management Fee (Range: 0%–0.5%)
Example: BUIDL = 0.5%, while most blockchain with Foundation's strategic investment has a lower charge at 0.2%.
• Creation/Redemption Fee
Most products do not charge this fee, similar to mutual funds. Exceptions: Backed’s bIB01 and Ondo’s USDY.

2. Accessibility
A. Minimum Investment
• Many issuers target institutions/HNWIs, usually >$100k.
• Retail-accessible offering: Franklin Templeton’s BENJI ($20 min.).

B. Secondary Market
• Due to KYC/compliance, only a few allow transfers or secondary trading.
• Exceptions: USDY & USDM

Note: USDM is no longer active after Mountain Protocol was acquired by Anchorage.

3. Yield
A. Compounding
• Does the product reinvest yield daily or distribute monthly?

B. Rebasing vs Non-Rebasing
• For rebasing, the yield will be distributed via the issuing of additional share
• For non-rebasing, the yield will be distributed via the increase in the price per share

The common concern for rebasing structure is that it could be taxable as it is deemed as income.

4. Structure
Blockchain-native vs Wrappers
• Some are native on-chain funds (e.g. BENJI)
• Some are wrapper of a wrapper (e.g. bIB01 is a wrapper of an existing IB01 ETF)

Different structure will lead to different rights and legal claims for token holders.

5. Primary Market
A. Settlement Time
• Can be instant (via USDC) or T+1 - T+5.

B. Liquidity Facility
Any Liquidity buffer to support large redemptions

6. DeFi/CeFi Integration
A. Permissionless Products
• Supported across multiple DeFi protocols (e.g. Ondo’s USDY).
B. Permissioned/KYC Products
• For example: JTRSY from @centrifuge is integrated with @MorphoLabs and @aave Horizon as collateral.
C. CEX/Custodians Integration
• Some tokenized MMFs/Treasuries can be held on CEXs/Custodians and even used as collateral.

7. Number of Supported Chains
• How many supported chains for the asset. Most of the issuers nowadays support EVMs (Ethereum, Arbitrum, Base, Polygon, Avalanche, Optimism) and Aptos, Solana. And it would be great if issuers support cross-chain bridging like @Securitize leveraging @wormhole
• Optional: Stellar, Ripple

8. Transparency & Reporting
• Any oracles for reporting NAV such as using @chainlink /@redstone?

9. Legal and Regulations
• Is it registered with the SEC or is it an offshore product?
• Who are the counterparty for T-Bill custodian, Transfer agent etc.