Noble teams up with Hashnote to roll out tokenized securities on Cosmos

Blockchain project Noble has partnered with asset manager Hashnote to introduce a tokenized real-world asset product on Cosmos.

The product of this collaboration is USYC, a short-duration yield fund product from Hashnote. USYC, a token that will be issued on the Noble blockchain, will provide investors exposure to short-duration securities, including U.S. treasury bills.

Noble is a blockchain widely known as the native asset issuer of Circle’s USDC stablecoin for the Cosmos ecosystem. On the other hand, Hashnote — backed by investors like DRW Holdings and Cumberland — is an asset manager offering management strategies in crypto and real-world assets.

Noble aims to tap into the RWA niche on Cosmos with its USYC rollout. The market for RWAs is still nascent but rapidly growing. In particular, tokenized securities have seen a swift increase in value over the last year, with the market size estimated at over $500 million, according to Dune data.

Cosmos is an ecosystem of over 80 application-specific blockchains — such as Cosmos Hub, Osmosis, Injective, Noble and several others — which have a combined market capitalization exceeding $45 billion. These blockchains can interact with each other using the Inter-Blockchain Communication Protocol.

USYC’s potential applications

As the first cross-chain RWA on Cosmos, USYC is expected to be used across a diverse range of applications, including as collateral in DeFi apps across the Cosmos ecosystem — according to a statement. “This initiative will demonstrate the power of the IBC protocol in making real-world assets natively interoperable,” said Noble CEO and co-founder Jelena Djuric.

According to Noble, USYC will have a “T+1 redemption” guarantee. This refers to the promise that an investment can be redeemed (sold back to the issuing entity) one business day after the trade date.