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  • Issuer concentration: the portfolio depends on Ondo (USDY) and BlackRock (BUIDL). A counterparty or regulatory event affecting either one impacts the yield and, in an extreme scenario, the principal.
  • Dependence on Circle’s rail: CCTP is a critical component of the flow. A failure or pause in the protocol halts cross-network movement.
  • Rate risk: the yield tracks the Treasury curve. A drop in the U.S. risk-free rate reduces the portfolio yield in the same direction.
  • No deposit insurance: unlike a traditional bank account, there is no FDIC coverage or equivalent for the allocated balance.