OpenTrade has introduced a new category of stablecoin yield products in partnership with Figment, the world’s largest independent staking provider, and with custodial support from Crypto.com, according to details shared with Finbold on November 14.
The new product, OpenTrade Stablecoin Staking Yield Powered by Figment, delivers an average annual percentage rate (APR) of around 15% on stablecoins, based on historical data and market conditions.
It combines staking rewards from Solana (SOL) with OpenTrade’s institutional-grade yield infrastructure and a hedging strategy that offsets price volatility of the staked tokens.
Figment is bringing its “safety over liveness” approach, that allows institutional investors to earn staking-based returns while avoiding exposure to decentralized lending markets. The platform’s infrastructure includes legal protections for institutions not typically available in DeFi lending.
Under the partnership, Crypto.com provides custodial services for SOL tokens, which are held in segregated accounts. Investors are granted a security interest in the custodied assets, which remain fully separated from the exchange’s operational funds.
“We’re bringing our battle-tested infrastructure and security mindset to stablecoins to offer customers exceptional yield opportunities with the peace of mind of an institutional service,” said Andy Cronk, Co-founder and Chief Product Officer of Figment.
While users deposit and withdraw stablecoins, earnings are generated through Solana staking returns managed by Figment and hedging via perpetual SOL futures managed by OpenTrade. The combined model has historically produced yields more than double Solana’s native staking rewards of around 6.5% to 7.5%.
Jeff Handler, Co-Founder and CCO of OpenTrade added:
“As stablecoin usage and demand for stablecoin yield solutions amongst exchanges, wallet providers, and other fintechs has continued to surge, we have been working closely with Figment to build and deliver a new stablecoin yield offering that improves on existing options in the market today. Stablecoin Staking Yield is the result of these efforts, and through our partnership, any company with stablecoins can access a new category of yield options which offer a combination of market leading returns and strong protections, which together cannot be accessed across either solely RWA or DeFi investment strategies.”
Karl Turner, Director at Crypto.com, concluded on the parnership:
