Usual is a new stablecoin protocol that passed $1 billion in market capitalization yesterday less than four months post launch. Today it reached $1.15 billion, becoming the seventh largest stablecoin. Until this week, Usual’s stablecoin was entirely backed by Hashnote, a tokenized money market fund (MMF) from the founders of DRW. Yesterday Usual said it would start diversifying the reserves to include Ethena’s new USDtb stablecoin, which in turn is backed by BlackRock’s BUIDL money market fund. Today Usual announced a third element of its reserves, UsualM, an extension of the $M stablecoin.
The M^0 protocol underpins the semi-decentralized stablecoin $M. Rather than relying on a single issuer, there can be many issuers that invest the assets in Treasuries only. M^0 shares revenues from the reserves with issuers and earners, with Usual counting as an earner in this case. Usual gets a special version of $M, the UsualM, with additional functionality such as permissioned unwrapping, blacklisting and pausing capabilities.
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