Opentrade and Figment Launch Stablecoin Staking Yield, Promise Returns of Up to 15%

Figment and OpenTrade have launched the “OpenTrade Stablecoin Staking Yield”, an innovative product that promises returns of up to 15% by leveraging the staking yields of SolanaCrypto.com acts as custodian for the underlying assets. This new service allows institutions to deposit and withdraw stablecoins, with the returns generated by Solana (SOL) staking rewards and an offsetting perpetual futures hedge, managed by OpenTrade. Trades are executed through Figment's platform, while the strategy is executed in an OpenTrade-managed vault.

According to Figment, this strategy has historically delivered returns higher than Solana's typical staking rates, which range from 6,5% to 7,5%. This illustrates not only the appeal of staking but also the innovative approach to yield optimization within the crypto ecosystem.

Access to unique return opportunities

Jeff Handler, co-founder and chief commercial officer of OpenTrade, emphasizes that this new product offers companies access to unique return opportunities not available through traditional real-world assets (RWA) or decentralized finance (DeFi) avenues. This is crucial for institutions seeking diversification in their investment portfolios and new ways to grow their capital.

Figment itself is a major player in institutional staking, with a staggering $18 billion in assets under staking. OpenTrade, on the other hand, offers a platform for on-chain and RWA-linked loans and stablecoin yield products, strengthening its relevant connections within the dynamic crypto market.

The growth of Solana staking ETFs

The passage of the US GENIUS Act in July provided stablecoin issuers with a clear, federally regulated legal basis, leading to growth in these assets. However, this legislation prohibits stablecoin issuers from offering interest or returns to token holders. As a result, some institutions have shifted their focus to staking-based returns, with Solana an attractive option, partly due to the recently launched staking exchange-traded funds (ETFs).

The first Solana staking ETF launched in July with trading in REX-Osprey's SSK fund. By July 22nd, this fund had amassed over $100 million in assets under management, demonstrating strong interest. On October 28th, Bitwise launched an exciting new Solana ETF, which launched with over $220 million in assets. The following day, the Grayscale Solana Trust ETF (GSOL) entered the NYSE Arca.

The SOLs held by these funds are staked to secure the network in exchange for rewards. Grayscale returns approximately 77% of these rewards to shareholders, while Bitwise distributes around 72% and retains the remainder as part of the fund structure. Despite increasing regulated access to Solana staking rewards, the price of SOL has struggled recently. At the time of writing, the SOL token was worth approximately $135, down 19% from two weeks earlier, according to recent data.

Frequently Asked Questions

How does the OpenTrade Stablecoin Staking Yield contribute to the growth of the crypto market?
The OpenTrade Stablecoin Staking Yield offers investors the potential for significant returns that challenge traditional investment models. By leveraging staking capabilities and innovative capital management, this product enhances the diversity of offerings in the crypto market.

What are the implications of the GENIUS Act for stablecoin issuers?
The GENIUS Act has given stablecoin issuers a clear regulatory framework, but also limits their ability to offer returns. This has led to a shift toward staking models, as institutions seek alternative methods to optimize their returns.

Why has SOL's price risen recently despite the new ETFs?
While the introduction of new ETFs has increased interest in Solana, external factors such as market sentiment and broader economic conditions continue to influence its price. The recent 19% drop highlights the challenges this cryptocurrency currently faces.