Crypto exchange Bitget has officially entered the booming real-world asset (RWA) market with the launch of BGUSD, a yield-bearing stable asset backed by tokenized traditional financial instruments.

Unlike typical stablecoins, BGUSD is structured as a “yield-bearing stable asset certificate,” Bitget CEO Gracy Chen told Cointelegraph. It delivers a 4% annual yield, credited daily to users’ spot accounts. Subscriptions are made using USDC, and BGUSD can be redeemed for USDC at any time.

Backed by Real-World Assets and Institutional Partnerships

Bitget says the yield is generated from a diversified basket of tokenized real-world assets such as U.S. Treasury bills and high-grade money market funds, managed in collaboration with regulated partners like Superstate.

According to Chen, the product is specifically designed to provide exposure to stable yields while minimizing the risks associated with crypto market volatility.

To ensure transparency, Bitget plans to introduce third-party attestations verifying BGUSD’s asset backing. “Transparency and accountability are core principles of BGUSD’s framework,” Chen said. “While independent attestations are coming, our institutional partners already undergo rigorous audits and comply with regulatory requirements.”

Chen also clarified that BGUSD is not categorized as a stablecoin or a security, meaning it does not fall under conventional licensing obligations. Liquidity for redemptions is supported by Bitget's reserve pool, which includes liquid assets such as USDC.

Yield-Bearing Stablecoins See Rapid Growth

Bitget’s launch comes amid a surge in the yield-bearing stablecoin market, which has grown from $1.5 billion at the start of 2024 to $11 billion as of May 21, according to a report by Pendle. This accounts for approximately 4.5% of the total stablecoin market.

The market expansion is partly driven by growing regulatory clarity in the U.S. under the current administration. In February, Figure Markets became the first company to receive SEC approval for an interest-bearing stablecoin.

Proposed legislation such as the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act is also signaling increased regulatory support for stablecoin innovations.