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Learn more about how OpenTrade's Treasury Management Product works
OpenTrade's Treasury Management Product allows users to lend USDC against collateral consisting exclusively of short-dated US Treasury Bills.
- Earn stable, predictable returns that are uncorrelated to crypto prices and markets
- Fully secured with the most liquid, safe collateral on the market - US Treasury Bills
- Continue to operate entirely on-chain using your own wallet(s)
- Earn superior risk-adjusted returns when compared to other DeFi offerings
- Diversify yield generating activities
- Bankruptcy remote structure ensures lenders are protected
- Third parties (e.g. exchanges, custodians) can power their own yield products by building on it
- Lenders enter into short-term, secured loans of USDC to OpenTrade SPC (the "Borrower")
- OpenTrade SPC is a bankruptcy remote SPV operated by an FCA regulated investment firm
- Loans pay a fixed rate of interest to Lenders in USDC over the tenor of the loan
- US Treasury Bills, USD, and USDC serve as the only form of eligible loan collateral
- USDC loans are converted to USD via Circle and used to purchase loan collateral
- USD and Treasury Bills are purchased and held with regulated brokers and custodians
- Loans automatically roll over unless the lender chooses to terminate the rollover
- There are two types of withdrawal request; (i) a rollover termination where the Lender receives repayment after the maturity date and (ii) early withdrawal requests, where lenders receive repayment before the maturity date. Withdrawal requests can be made in part or in whole.
- The Borrower takes no directional risk on the underlying price of the collateral
- The Borrower's assets and liabilities are always matched 1-to-1.
- This product is only available for institutional (and not retail) investors.
- No securities lending or leverage is permitted at this time.
OpenTrade's Treasury Management Product is significantly different than other on-chain T-Bill products.
Direct Ownership of Underlying Assets
The Borrower has direct ownership of the loan collateral, held with regulated custodians in segregated accounts, and lenders have fully perfected security interest in the Treasury Bills, as opposed to simply wrapping existing ETFs. This is a more cost efficient structure with fewer external dependencies and fewer layers between the Lender and the collateral.
Fully collateralised at all times
All loans are fully collateralised at all times with US Treasury Bills, USD, and/or USDC. The Borrower is always asset-liability matched and takes no directional risk on T-Bills. Other products take directional bets and/or are not always asset-liability matched, exposing users to run risk and trading performance risk.
Fixed Rate of Return
Loans pay a legally binding fixed rate of return over a fixed term, as opposed to other products that pay variable rates which can change at the issuers discretions and/or fluctuate based on trading performance.
Quick issuance and withdrawal
Instant minting and redemption / loan repayment takes a maximum of 2-3 business days. Instant liquidity can be made available for bespoke offerings.
Vertically integrated with dedicated, FCA regulated investment firm already managing and administering almost $1B in institutional money. We directly control the quality and strategy of our products from end-to-end.
Can be white-labeled and fully integrated into other systems, dApps, and interfaces. Partners like exchanges and custodians can use OpenTrade to power their own yield products for their customers.
Battle Hardened Tech
Built on battle hardened smart-contract and payments infrastructure powered by Circle.