Resonate Announces Launch of RWA Pilot with Hashnote, Arbelos Markets, and CipherChain Capital
Resonate is thrilled to announce both a groundbreaking partnership with Hashnote, Arbelos, and CipherChain and the launch of our pilot RWA program!
This collaboration integrated the Hashnote US Yield Coin (USYC) into Resonate, with an initial pilot deployment. In this joint effort, Arbelos Markets deposited their short-duration asset-backed tokens into Resonate, receiving an immediate payout on their future yield. The borrowed capital will autonomously repay itself to CipherChain, the lender in this arrangement.
Our Collective Pursuit
In collaboration with Hashnote, we are introducing tokenized exposure to short duration fixed-income assets on Resonate, marking the initial phase of a long-term strategy detailed in our recent whitepaper. Hashnote serves as the tokenizer in this partnership, providing KYC/AML and tokenization services to Resonate’s lenders and borrowers through its USYC token. These permissioned ERC-20 tokens operate by securely holding short-duration assets in off-chain custody, gaining increased backing as the RWAs that collateralize them reach maturity.
Arbelos Markets, a principal trading firm, has taken on the role of the borrower in this pilot. By depositing into Resonate, they received immediate payment of the one-month yield on that principal. While Arbelos typically avoids direct exposure to digital assets like Bitcoin or Ethereum due to its delta-neutral stance, Resonate’s principal-protected functionality empowers Arbelos to utilize future yields, rather than principal capital, to speculate on Ether and Bitcoin perpetuals. Successful strategic bets could significantly boost returns on the risk-free rate offered by US treasuries, while maintaining an extremely low-risk profile. In the event of unsuccessful speculation on perpetuals, Arbelos won’t incur a debt against their principal, as their fixed-income assets will autonomously repay the loan.
CipherChain, a prominent player in the hedge fund realm, has acted as the lender, leveraging the spread between the amount lent to Arbelos and the yield Arbelos’ assets generate on Hashnote. This ensures that CipherChain will profit at a predetermined rate, irrespective of the outcome on Arbelos’ side.
This pilot program provides a glimpse into the future of Resonate, showcasing a revolutionary strategy. It aims to offer institutional investors assurances, compliant self-custody, and desirable returns. Resonate goes beyond merely offering tokenized “real-world assets”; investors gain the potential returns of decentralized finance (DeFi) with the security of traditional finance (TradFi). Serving as a gateway between these two realms, Resonate presents a unique value proposition for institutional investors.
About the Teams
Hashnote
Hashnote is an on-chain-first financial technology firm focused on fully regulated and compliant institutional investments. Best known for its institutional-grade service, on-chain structured products, and KYC/AML practices. Hashnote prioritizes regulatory compliance and on-chain transparency while providing institutional investors with a full-service gateway into DeFi.
The Hashnote Short Duration Yield Fund invests in short-term U.S. Treasury Bills and performs repo/reverse repo activities against the underlying asset in the USYC token. USYC earns short-term overnight funding rate returns. The fund benefits from the transaction speed, transparency, and composability of tokenization while eliminating virtually all of the protocol, custody, regulatory, and credit risks associated with other token projects.
Hashnote is regulated by the CFTC (Commodity Futures Trading Commission) as a CPO (Commodity Pool Operator) in the US, while offshore funds are regulated by CIMA (Cayman Islands Monetary Authority).
Arbelos
Arbelos Markets is building a durable principal trading business for the next crypto cycle. We are focused on re-establishing the bilateral trust lost in a post-FTX world. We are specialists in derivatives liquidity and market structure, from the high-touch to the programmatic.
CipherChain Capital
Cipher Chain Capital is an emerging leader in decentralized finance market-neutral capital management. Operating as a 506(c) Hedge Fund, CipherChain specializes in DeFi orientated Capital Management, Market-Making, and Delta-Neutral Strategies.
Resonate
Resonate is a marketplace where users can lend their variable rate assets to receive fixed rates (or provide fixed-rates to obtain boosted variable rates). Through tokenizing positions with Revest’s Financial NFTs (FNFTs) engine, Resonate is able to offer this interest exchange with fully customizable liquid lockups and zero-slippage.
Resonate enables low-to-no risk asset managers to maintain their secure gains from US Treasuries while tapping into DeFi yields and assets without jeopardizing their initial principal. It empowers asset managers to leverage their existing fixed-income portfolios, unlock hidden value within these assets, and access digital assets in a compliant, principal-protected manner.
This groundbreaking solution is enabled by the unique valuation of short-duration fixed-income assets. Short-term fixed-duration assets typically lack strips, meaning they are purchased at a value lower than their face value and realize that face value upon maturity. Resonate facilitates the realization of this value at any point during the maturity process by lending against the unrealized value. This decouples interest from the underlying asset, allowing borrowers to deploy the borrowed capital into DeFi and digital asset strategies.