21Shares launches yield ETP

Crypto ETP issuer 21Shares has announced the listing of the 21Shares USD Yield ETP (USDY).


USDY is designed to provide collateralised dollar-denominated yield at the rate of 4-5 per cent. USDY generates yield by taking in US dollars and lending them to counterparties against a minimum of 110 per cent collateral in BTC and ETH marked-to-market daily. The yield is generated by lending USD to well-known counterparties in the crypto space. 


The firm writes that after more than a decade of historically low interest rates and high asset values combined with a highly inflationary environment, investors face extraordinary challenges in building cash portfolios.


The firm writes that the 21Shares USDY ETP enables yield-seeking investors to participate directly in the profits of lending USD in the crypto space without taking any direct crypto price exposure. The returns generated are added directly to the net asset value (NAV) of the ETP. 

“We’re in an environment where interest rates are negative and we’re really excited to offer a first of its kind product that can provide meaningful risk adjusted yield. USDY does this by tapping into the crypto capital markets where rates are higher while also providing liquidity,” says Ophelia Snyder, President and co-founder at 21Shares. “With USDY, we’re introducing a financial product fully dedicated to providing yield – and minimising risk while reaffirming the vision of 21Shares, to build bridges into the crypto world.”

The 21Shares USDY ETP will be listed on SIX Swiss exchange and is available to investors in USD.


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