The arrival of USDR v2 brings with it a variety of new features that will set the stablecoin up for long-term success. Check out this article for an overview of everything that’s new.
Additionally, we took this redeployment as an opportunity to explore the branding of USDR, with the goal of establishing a product with enduring recognition and meaning, both in the cryptoeconomy and mainstream personal finance audiences.
To that end, USDR has been given the proper formal name: Real USD
What’s the meaning behind Real USD?
Real USD brings together the key elements of the product and links them to the name in a simple, straightforward manner.
Real Estate:
As we know, Real USD is the first rebasing stablecoin backed by tokenized, yield-producing real estate. Real estate is fundamental to the token concept, which itself is an expression of Tangible’s thesis on the long-term value of tokenized real world assets in the cryptoeconomy.
We’ve been bullish on our view that 10–20% of RWAs will change hands on-chain in the next 10 years. Real estate is the largest of these physical asset categories with the global real estate market valued at $330 trillion. Bringing just 1% of that value on-chain would 4x the entire market cap of crypto.
Real USD brings real estate, the critical store of value behind our token, front and center in the new name.
Real Yield:
The #RealYield movement is one of the largest conversations in crypto right now. By the end of the bull run, it was clear that the vast majority of the yield in crypto was manufactured, printed through token emissions and a variety of ponzinomic designs. Nothing encapsulated this more than Anchor’s 20% UST yield and the eventual meltdown of the Terra ecosystem.
The market participants who’ve remained in this space are now laser focused on identifying projects that offer investors a transparent source of consistent, repeatable yield. While several protocols seem to have solved this by distributing transaction fees back to token holders, ultimately those solutions are a zero-sum game, shuffling money around within crypto without bringing anything new to the market.
Real USD distributes real yield to users that’s sourced from the rental income on the properties in the treasury. This transparent, consistent, repeatable yield is derived from reliable off-chain sources, insulating it from the volatility of the crypto space. It’s new money to this ecosystem, adding to the crypto market cap, sourced from one of the oldest and most reliable yield systems in existence: rent.
Real Money:
As articulated in our whitepaper, Real USD satisfies the three requirements of money:
- Store of value
- Stable unit of account
- Medium of exchange
Fiat no longer satisfies these requirements as it’s no longer a store of value. Monetary policy of excessive printing, and the subsequent inflation resulting from it, has resulted in the dollar losing 86% of its purchasing power over the past 50 years. Stablecoins backed by fiat suffer from the same debasement. The fiat experiment of a money backed by nothing has failed.
However, money backed by income-producing real estate, an asset category that has increased in value by 14x over the past 50 years, can fight this loss of purchasing power by supplying a daily real yield back to its holders. An 8–10% native yield from rental income keeps pace with our current inflation numbers. And over time, as the properties in Real USD’s backing appreciate in value, those gains will be distributed to holders through incremental yield.
Looking across both government monies and private monies in crypto, there are very few examples beyond Real USD of an asset that can truly be considered real money based on the three criteria above. Real USD stands alone as a new type of currency, an actual hard money, fully backed by real estate, the most reliable asset category in history.
Implementing the new name
Moving forward, expect to see Real USD and USDR used interchangeably in our content and communications. USDR fits the existing USD-pegged stablecoin naming system of USDx and will remain the ticker for the v2 token on our site and across DeFi. This is the same approach that’s been successfully used by Tether, with consumers switching seamlessly between the formal name and USDT.
You’ll also see Real USD locked up with additional context until we feel we’ve established enough awareness to let the name speak for itself.
Real USD: Real Money | Real Yield | Backed by Real Estate
