Under the boom of income-generating assets, how will BGUSD reshape the RWA income experience?

Note: This article is a submission and does not represent the views of ChainCatcher, nor does it constitute investment advice. Please approach it with caution.

Author: Kazmin

In 2025, yield-bearing stablecoins have become one of the fastest-growing segments in the crypto market. According to a report by Cointelegraph, as of mid-May, the market capitalization of such assets has surpassed $11 billion, accounting for 4.5% of the total stablecoin market cap, a significant increase from just 1% last year. This trend is spreading from on-chain DeFi to CeFi platforms, becoming a new tool for centralized institutions to compete for asset retention.

Against this backdrop, Bitget has launched BGUSD—a "yield-bearing stablecoin-like" product that is circulatable, interest-bearing, and has no lock-up restrictions within the platform. BGUSD can be subscribed using USDT/USDC and essentially serves as a self-issued yield certificate by the platform, representing users' rights to the earnings pool. It combines investment returns, token functionality, and collateral use, with the underlying reference assets being a basket of tokenized RWA (such as U.S. Treasury bonds), ensuring high security and liquidity.

This article will break down its design structure, functional mechanisms, and strategic significance, exploring whether it could become the asset form closest to "wealth management U" within the CeFi system.

1. What exactly is BGUSD?

Before delving into the structural details of BGUSD, we can quickly understand the basic characteristics of this product through a set of core parameters:

Product Nature: Platform yield certificate

Subscription Supported Currencies: USDT/USDC

Annualized Yield: 5% for the first 30 days, 4% thereafter

Interest Calculation Method: Daily interest settlement

Is there a Lock-up: No

Redemption Method: T+0 (non-VIP users have a daily limit of 10,000 BGUSD)/T+3

Usage Fees: Subscription and redemption both incur fees; subscription is free for the first 30 days

Available Scenarios: Contract margin, lending, Launchpool, staking, etc.

Exchange Currency and Fees: Can be exchanged 1:1 with USDC, with a fee of 0.1%

BGUSD is a yield certificate that circulates exclusively within the Bitget platform. Its core logic is not to anchor asset value but to confirm users' "rights to earnings" from the platform's earnings pool, akin to a structured "in-platform wealth management token."

BGUSD utilizes Bitget's proprietary funds to allocate to short-term U.S. Treasury bonds, repurchase agreements, and other traditional low-risk assets, creating a sustainable yield base. Users can subscribe using USDT/USDC (USDC is exchanged for BGUSD at a 1:1 ratio, while USDT is exchanged based on the real-time USDC/USDT spot price) and gain daily interest rights. The system calculates earnings based on the "minimum holding amount of the day" and automatically distributes them to users' spot accounts, requiring no on-chain operations or additional claiming steps.

The subscription process is similar to the platform's wealth management products and can be completed directly in the Bitget App under the "Wealth Management > On-Chain Selection > BGUSD" module. The operational threshold is low, allowing CeFi users to earn interest without needing a wallet. For example, if a user holds 10,000 BGUSD, based on an initial annualized rate of 5%, they can expect to earn approximately 1.37 USDC daily, with a total yield of 41.1 USDC over 30 days.

The main functional features of BGUSD also include:

• Automatic Compound Interest Settlement Mechanism: The platform takes hourly snapshots of holdings, using the lowest value as the yield benchmark, with earnings credited daily;
• High Liquidity, No Lock-up: Supports T+0/T+3 redemption;
• Multi-Scenario Versatility: Can be used on the platform for contract margin, staking, lending, Launchpool, etc.

Fundamentally, BGUSD is not an on-chain stablecoin but a CeFi model asset that combines yield rights, circulation ability, and platform credit structure, representing another attempt by centralized platforms.

2. What kind of "bond-like design" does BGUSD exhibit?

The structure of BGUSD adopts a composite model of "platform bonds + token form." Although it is not a traditional bond, its core logic is built around a closed-loop mechanism of "yield rights issuance—fund allocation—earnings distribution," integrating the stable yield characteristics of financial instruments with the liquidity functions of platform tokens.

The overall operational mechanism can be broken down into five key links:

1. Platform Proprietary Fund Allocation to RWA: Bitget uses its own funds to invest in short-term U.S. Treasury bonds and other high liquidity, low-risk real-world assets (RWA), providing sustainable support for yields. Compared to the algorithmic interest rate models commonly seen in DeFi, RWA is built on the certainty of returns based on the real financial system (such as the federal funds rate), ensuring a stable and controllable yield path while protecting user funds from on-chain risks.
2. User Subscription to Obtain Yield Rights: Users subscribe to BGUSD using USDT/USDC, gaining daily earnings distribution rights rather than ownership of the underlying assets. The structure is similar to "structured deposits" in bank wealth management, placing users at the participation end, with earnings coming from the platform's earnings pool distribution.
3. Daily Interest Settlement and Automatic Distribution: The system records BGUSD holdings hourly, taking the lowest value of the day as the interest calculation benchmark to prevent arbitrage. After daily settlement, earnings are automatically distributed without user operation, forming a passive income path similar to compound interest, enhancing the fairness and transparency of distribution.
4. Multi-Scenario Versatility Enhancing Usage Flexibility: Unlike single-use wealth management products, BGUSD is designed as a multifunctional token within the platform, widely usable for U-denominated contract margins, lending, staking, Launchpool, etc., combining the attributes of a wealth management tool and platform token, improving asset reuse efficiency.
5. Platform Acceptance with Dual-Channel Redemption: Users can exchange BGUSD for USDC at a 1:1 ratio, supporting flexible T+0/T+3 redemptions, with the platform assuming liquidity and pricing responsibilities. The fee is 0.1%, with a stable and efficient process ensuring smooth asset exit for users.

Through this closed-loop structure, BGUSD builds a "quasi-financial instrument" system that does not require on-chain contract support, achieving tokenized yields while maintaining high freedom of fund allocation and circulation within the platform. It retains the controllability of CeFi while borrowing the flexibility of on-chain assets, becoming a representative design of "bond-like + stable asset" in the CeFi world—of course, its entire operation still heavily relies on platform credit and operational capabilities.

3. The similarities and differences between BGUSD and stablecoins

Although the name BGUSD ends with "USD," which may easily lead one to associate it with stablecoins at first glance, its product structure, yield model, and circulation method have significant differences from stablecoins. Especially in functional design, it combines the dual attributes of stable assets and yield certificates, positioning it closer to wealth management-type assets.

The main reason for this "inconsistency" is that BGUSD mimics the U-denominated setting of stablecoins in form, ensuring stable valuation and standardized asset experience within the platform; however, in essence, it is more like a "structured yield certificate" issued by the platform, representing users' rights to the earnings pool rather than a "neutral asset" that can be circulated on-chain for payment and trading at any time.

The following comparison table outlines the differences between BGUSD and mainstream stablecoins USDC/USDT across core dimensions, further highlighting its structural essence of being "more like a wealth management product than a stablecoin."

Currently, in mainstream centralized exchanges, products designed similarly to BGUSD are not common. Exchanges like Binance, OKX, and Bybit offer some products in their Simple-Earn and OKX-Earn wealth management sections, allowing users to invest stablecoins to earn returns, but there is no independent "yield coin" form, and operations require manual separation, making the usage threshold relatively high.

Thus, BGUSD is an attempt to combine stable assets and yield mechanisms within the CeFi framework, enhancing the efficiency of user funds and reconstructing the "token + wealth management" asset model within the platform. Such products blur the boundaries between stablecoins and financial products, representing a strategic extension of crypto platforms in user experience and asset design dimensions.

4. Comparison of BGUSD with other platform products

To better understand BGUSD's positioning and design logic in the CeFi world, it is necessary to conduct a horizontal comparison with several representative yield assets under current on-chain or institutional compliance frameworks. Although these products have different mechanisms, most are supported by RWA (real-world assets) and introduce traditional financial yields to crypto users in various ways.

We selected several products with typical structural characteristics: USDY from Ondo Finance, BUIDL launched by BlackRock, USD0, a U.S. Treasury-backed stablecoin, sDAI from Maker DAO, and the algorithmic stablecoin USDe from Ethena. They exhibit some similarities and differences with BGUSD in terms of asset structure, yield model, usage openness, and user thresholds.

These products represent different design ideas:

• USDY and USD0: Both are supported by U.S. Treasury-like RWA and belong to stable yield DeFi products. USDY leans more towards compliance, while USD0 focuses on staking incentive mechanisms, requiring users to understand DeFi operational processes.
• BUIDL: Launched by the world's largest asset management firm, BlackRock, it reflects the yields of its money market fund (MMF) and is one of the most compliant RWA applications currently, primarily targeting custodial platform users due to its institutionalized issuance mechanism.
• sDAI: A native passive yield certificate from Maker DAO, with earnings derived from the DSR (Dai Savings Rate). It features flexibility, transparency, and no lock-up, but lacks the RWA component supported by real financial systems, making its yield sensitive to Maker's monetary policy.
• USDe: Built on derivative hedging strategies, it does not rely on RWA. Users stake USDe to obtain sUSDe, currently yielding about 5% annually. The mechanism is innovative but must address funding rate volatility risks.

While BGUSD does not possess on-chain attributes, it provides users with a similar experience within the exchange by allocating RWA through platform proprietary funds: low volatility, high certainty of returns, automatic distribution, and the circulation functions of platform tokens such as contract collateral and staking participation.

It can be said that BGUSD is a "usability translation" version of CeFi's logic for DeFi yield assets. It is close to USDY and BUIDL in investment logic, but its operational path resembles that of sDAI—users do not need to understand on-chain structures, do not need wallets or cross-chain tools, and do not bear on-chain gas fees, allowing them to "earn interest with one click."

This design lowers the usage threshold and builds a user experience similar to traditional wealth management products through platform credit endorsement, packaging complex financial underpinnings into an intuitive and user-friendly digital token form. This is not only an optimization of product design but also an integration of DeFi/TradFi models.

5. Who is BGUSD suitable for? What is its user value?

The core advantage of BGUSD lies in integrating "yield generation, token circulation, and platform functionality" into a unified asset unit. This makes it naturally suitable for users who wish to enhance fund efficiency but do not want to face the complexities of on-chain operations. Here are several typical user profiles:

1. Centralized Preference Users: Those accustomed to managing assets on exchanges, unfamiliar with on-chain wallets and cross-chain operations. BGUSD's "automatic interest settlement + no lock-up" feature meets their needs for yield and flexibility.
2. Long-term Fund Holders: Users holding stablecoins as backup funds but without any yield strategy. BGUSD allows these "idle assets" to generate daily interest automatically and be accessed at any time.
3. Highly Active Users Seeking Fund Reuse: Users frequently participating in contracts, lending, etc., who wish to use funds "for multiple purposes." BGUSD possesses both yield attributes and platform token functionality, meeting the need for flexible deployment.
4. Stablecoin Holders Not Engaged in Wealth Management: Users who have not configured yield strategies due to inconvenience or risk concerns. The asset form of BGUSD-like stablecoins offers a low-threshold automatic yield solution.
5. Conservative Users Focused on Certain Returns: Users unwilling to engage with high-risk on-chain strategies, preferring a simple and stable yield experience. BGUSD's one-click subscription and daily compound interest mechanism perfectly meet this preference.

In summary, BGUSD represents an attempt at "wealth management tokenization": it encapsulates yield rights into a token form that can be flexibly used in various scenarios within the platform, enhancing user experience and extending the active cycle of funds within the ecosystem.

6. The risk structure behind the yields

Although BGUSD has constructed a complete yield closed-loop model, as a CeFi product, its operation still relies on platform credit and fund operational capabilities, which constitutes its core trust foundation.

Unlike the open compliance paths of on-chain RWA projects, BGUSD resembles a financial token with a "closed structure within the platform," and its institutional transparency and regulatory interfaces still need improvement. This design gives it a lower usage threshold and stronger product integration, aligning with Bitget's strategic positioning to expand Web2 users.

Overall, what BGUSD embodies is not a replication of traditional stablecoins or on-chain strategy products, but a structured attempt that integrates yield, liquidity, and user-friendly experience. Its innovative space arises from this "not yet fully defined" platform model.

Users should still make rational judgments based on their risk preferences, liquidity needs, and trust in the platform before using it.

Conclusion: BGUSD is a structured attempt by CeFi at yield-bearing assets

The launch of BGUSD represents Bitget's strategic extension in the direction of yield-bearing assets and an active exploration of RWA yield integration logic. In a world where on-chain design philosophies emphasize "transparency, combination, and automation," BGUSD attempts to reconstruct a "simple, yield-generating, and adjustable" asset model from the user experience perspective using the form of platform tokens.

It does not rely on complex wallet operations, nor does it require users to master on-chain protocol logic; without needing cross-chain or collateral, users can convert stablecoin assets into yield certificates that can compound, participate, and be redeemed with just one subscription action. In this process, users do not need to understand U.S. Treasury bonds, repurchase agreements, RWA, or DeFi interest rate models, yet they can intuitively perceive the appreciation of asset value through daily credited earnings. This reconstruction of experience is a key trend in the democratization of crypto finance.

In the on-chain financial domain, products like sDAI, USDY, and USDe emphasize on-chain transparency and yield combinability; while products like BUIDL and USD0 represent the mapping and experimental compliance paths of traditional financial assets (RWA) on-chain. In contrast, within the CeFi context, BGUSD offers a feasible solution with lower learning costs and higher internal circulation efficiency. It is not a simple replication of on-chain logic but a structured innovation that combines user habits with platform fund operation models.

It is not equivalent to stablecoins, but it may be a prototype of the multifunctional evolution of stablecoins;

It is not a wealth management product, yet it provides a wealth management product-level experience;

It cannot go on-chain, but it has become one of the internal tokens with the most "monetary functions" within the platform.

For exchanges, BGUSD represents a rearrangement of the platform's financial system: it transforms "yield rights" into a programmable digital asset, turning yield from an operational behavior into an asset form; for users, BGUSD is an entry point to access "digital wealth management" without needing to change identities, a relatively trustworthy "yield-bearing token" in a centralized financial environment.

Whether BGUSD will become the industry paradigm of the future remains to be tested by the market. However, it is certain that it has opened a new direction for innovation in CeFi financial products—this direction is worth observing, experimenting with, and may be emulated by more platforms.