over-collateralization

According to official news, on April 1st, the multi-chain decentralized over-collateralized stablecoin USDD officially surpassed a total value locked (TVL) of 2 billion USD, with its circulation also rising to 1.53 billion USD, both reaching historical highs. The simultaneous growth of TVL and circulation reflects the market's increasing recognition of its stability and application scenarios.Following a surge in TVL from 1.45 billion USD to 1.93 billion USD within the previous week, the inflow of funds into USDD continues, further solidifying its market positioning as the "yield-bearing version of USDT." As an over-collateralized stablecoin issued on multiple chains, USDD leverages a dual mechanism of "over-collateralization + PSM 1:1 exchange" and cross-chain compatibility advantages, demonstrating strong stability and user appeal amid market fluctuations.

In response to Tether CEO Paolo Ardoino's disclosure that the company holds U.S. Treasury bonds generating about $500 million in profit each month, Arthur Hayes posted on the X platform, stating that while Tether's profits are high, it is uncertain whether there is a specific dividend policy or if target over-collateralization rates are set based on asset types and their volatility."If Tether's liabilities are in dollars and its assets are U.S. Treasury bonds, then there is basically no major issue; however, if Tether's assets are illiquid private investments, then in the event of an unexpected situation, the market will be skeptical about Tether's over-collateralization."

New Hampshire has officially approved the nation's first municipal bond backed by Bitcoin, amounting to $100 million. This marks the first time digital assets have entered the traditional municipal financing system and is seen as an important step for Bitcoin towards the $140 trillion global bond market.The bond is authorized by the state’s Business Finance Authority (BFA), but it does not carry the risk of the state government or taxpayers. The safety of the funds is guaranteed by over-collateralized Bitcoin held in custody by BitGo. Borrowers must provide approximately 160% of BTC as collateral, and if the collateralization ratio falls to about 130%, the system will automatically liquidate to protect the rights of bondholders.New Hampshire Governor Kelly Ayotte stated that this is a "historic breakthrough in the field of digital finance," which can attract investment without using public funds. The structure was designed by Wave Digital Assets and Rosemawr Management, with Orrick law firm involved in building the compliance framework.Industry insiders say this model may pave the way for digital assets to enter municipal bonds, corporate bonds, and other fixed-income markets, laying the foundation for future Bitcoin bonds issued directly by state treasuries. (Crypto In America)

ChainCatcher news, Paxos officially released the April Pax Gold (PAXG) transparency report, which discloses the unaudited financial data of PAXG as of April 30 at 5 PM Eastern Time. The main points include: the circulating supply of issued PAXG slightly increased to 184,251.712 tokens, the reserve gold slightly increased to 184,251.761 ounces, and PAXG maintains over-collateralization.PAX Gold tokens are a type of cryptocurrency stablecoin that allows financial market participants to trade tokenized London Good Delivery gold on the blockchain, with each token representing ownership of the London Good Delivery gold held in the vault.

ChainCatcher news, Cardano developers recently announced in a meeting that its first decentralized stablecoin Djed will launch on the mainnet in January. Djed, developed in collaboration with Coti and Cardano's chief developer Input Output, has been in development for over a year and is a decentralized stablecoin soft-pegged to the US dollar. Upon launch, Djed will be integrated into 40 applications within the Cardano ecosystem.After the launch of Djed, Cardano users will be able to use Cardano's native token ADA as collateral to mint the stablecoin, which is designed to be over-collateralized, requiring more than 400% collateral value for each Djed minted. (The Block)