Anzen Finance Leverages Tokenized RWAs to Lead Stablecoin Innovation with USDz
Tokenization of real-world assets (RWA) is the leading trend driving market growth and institutional involvement in the crypto space today. Currently, this narrative is dominated by USD-pegged stablecoins, which have surged from just $5.2 bln in March 2020 to almost $162 bln now.
Given the high demand for stablecoins and their vast market size, Anzen Finance is all set to capitalize on this growth and adoption by introducing its very own stablecoin, USDz. However, unlike the regular stablecoins, Anzen leverages institutional-grade tokenized real-world assets to provide stability for its on-chain dollar.
Having the full backing of cash-flowing, overcollateralized RWAs, comprising a diversified portfolio of asset-backed private credit, enables the protocol to reward USDz holders with rewards to incentivize adoption. The RWA backing also helps the stablecoin maintain its stability and security. The tokenized assets used are vetted by qualified holders and pledged on-chain as collateral.
Besides reliable revenue streams, the private credit portfolio is expected to maintain its value even during periods of crypto market volatility. This stability offers crypto users the opportunity to diversify their portfolio away from the price fluctuations and volatility of unbacked tokens while still enjoying the benefits of crypto.
Moreover, these assets possess special traits that protect the investors, such as collateral that can be sold to cover investors’ funds and strict rules dictating their use by borrowers. By utilizing private credit assets for backing, USDz not only stands out among the sea of existing stablecoins but also offers enhanced safety and sustainable yield.
For the underwriting and custody of these RWA assets, Anzen has chosen to work with Percent, a licensed and established company which boasts a historical track record of over $1 billion in private credit deals. The platform has conducted 1.6bln in transaction volume with an APY of 16% and a default rate of 2% and helps Anzen in sourcing and structuring high-quality private credit opportunities.
Backed by some of the biggest names in the crypto sector—including Circle, Mechanism Capital, Frax Finance, PetRock Capital, IVC, Kraynos, M31, Arca, and PalmDrive Capital—Anzen Finance is currently in private beta.
A New Era of Stablecoins: Security Plus Sustainability
As a stablecoin, 1 USDz is always backed by 1 USD or more of on-chain RWA collateral. This means 1 USDz is equivalent to 1 USD of collateral assets. In case the value drops below 1 USD, market makers can purchase it at a discount, creating a buy pressure, thereby moving the price toward 1 USD. Conversely, if USDz trades above 1 USD, market makers can mint USDz with Anzen at a 1:1 USDz/USDC ratio and sell it, thus creating sell pressure.
The stablecoin is freely traded on decentralized exchanges (DEXs), where USDz can be swapped for other popular stablecoins like USDC and USDT. The project is also audited by Zelic, Peckshield, and Halborn to ensure security.
When it comes to USDz’s usage and applicability, it can be used across the ecosystems on different chains as an omnichain stablecoin. Being compatible with LayerZero’s Omnichain Fungible Token (OFT) standard, USDz can be bridged between chains directly on Anzen’s website in just a few minutes.
As a permissionless and composable stablecoin, USDz can also be seamlessly integrated across the expansive and exciting ecosystem of crypto. Moreover, USDz can be used for payments and used across the DeFi sector, which will help the stablecoin gain widespread acceptance.
Another significant advantage of using USDz is its staking capabilities; through sUSDz, DeFi users can earn sustainable rewards, diversify their portfolios, and protect themselves from severe price fluctuations. In the world of DeFi, where yield has fallen significantly, users have been looking for sustainable, exogenous yield, and USDz aims to capitalize on this multi-trillion-dollar opportunity.
Currently, users can acquire USDz and swap it with USDC via external AMM pools, deposit USDz with partner protocols to earn incentives, and stake USDz to earn rewards.
So, as a centralized stablecoin, with all its operations recorded transparently on the blockchain and utilizing a licensed platform to custody its backed assets, USDz offers the benefit of stability, capital efficiency, and security.
The backing by tokenized RWAs presents similar risks as the market leading USDC and USDT which are backed by US Treasury Bills, such as reliance on existing traditional market infrastructure and susceptibility to censorship due to collateral being held in regulated bank accounts. However, the immense growth of the $162 Billion stablecoin market shows that there is strong demand for the utility and stability that digital dollars can provide.
Built by a team of credit investment experts, USDz defines itself as a RWA-backed, scalable, and sustainable form of money. With this design, Anzen’s USDz emerges as a unique stablecoin that, for the first time, allows crypto users to finally access and take advantage of the stability and sustainable yield of real-world assets.
Disclaimer
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About The Author
Gregory, a digital nomad hailing from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With a wealth of experience in the financial industry, his insights and expertise have earned him recognition in numerous publications. Utilising his spare time effectively, Gregory is currently dedicated to writing a book about cryptocurrency and blockchain.
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Gregory, a digital nomad hailing from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With a wealth of experience in the financial industry, his insights and expertise have earned him recognition in numerous publications. Utilising his spare time effectively, Gregory is currently dedicated to writing a book about cryptocurrency and blockchain.
