Leading developers of stablecoins and tokenized assets have launched the STBL startup, which applies a zero-coupon bond structure to digital assets. The project transforms tokenized instruments into a dollar-pegged stablecoin and a separate NFT that accumulates yield.
The startup goes beyond the traditional model of stablecoin issuance. Normally, the issuer retains income from government bonds backing the dollar peg. In the case of STBL, the yield remains with the user who deposits the asset.
“Our mission is to turn stablecoins from a corporate product into public infrastructure,” said STBL and Tether co-founder Reeve Collins.
According to him, for the first time it is minters, not issuers, who retain the value of reserves.
Technical Structure of the Protocol
When a yield-bearing tokenized asset – for example BENJI from Franklin Templeton, BUIDL from BlackRock, or USDY from Ondo – is locked in the protocol, it is split into the USST stablecoin and the YLD NFT. USST can be used in DeFi as collateral or reserves, while the NFT accumulates interest income.
STBL CEO Avtar Sehra, formerly head of Kaio, emphasized that the separation of capital and yield allows the protocol to comply with the U.S. GENIUS Act and other regulatory frameworks.
Peg Maintenance Mechanism
To ensure USST is not classified as a security, its peg is supported through 103% overcollateralization with money market assets. An incentive system is also in place: issuance fees and burn credits during market fluctuations. Sehra called this method “synthetic” peg maintenance. It enables minting and burning of stablecoins in compliance with regulations, while users keep the yield.
Token Launch and Listing
The STBL governance token was launched on September 16 and listed on Binance Alpha, Binance Futures, and Kraken Spot. According to Sehra, the event became one of the most successful token generations of 2025. At a fully diluted valuation of $100 mln, demand pushed capitalization above $1 bln, with a peak of about $2.3 bln. The current figure stands at $1.3 bln.
Project Development Plans
Upcoming plans include issuing $100 mln worth of stablecoins backed by the BENJI token from Franklin Templeton and forming new partnerships, including with a U.S. payment company. Open access to the protocol is planned for the fourth quarter of 2025.
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