What is a Treasury-backed stablecoin in simple terms?

It's a digital dollar backed by U.S. government bonds. Each token is worth $1 and that value is guaranteed by Treasury bills in a regulated account. You earn interest from the bonds just by holding the stablecoin.

USDB is backed by U.S. Treasury bills, considered the safest financial assets. Reserves are held by regulated custodians with regular attestations. Risks include smart contract bugs and regulatory changes. It is not FDIC insured.

How is USDB different from USDC?

USDB is native to Bitcoin (no bridging needed), backed exclusively by T-bills, and automatically passes yield to holders. USDC is also backed primarily by T-bills and cash, but Circle keeps the reserve yield — USDC holders don't earn yield natively.

Can I earn yield on USDB?

Yes. USDB automatically earns yield from Treasury bills. Current T-bill rates provide 4-5% APY. No staking, no lock-up, no farming needed.

What are the risks of Treasury-backed stablecoins?

Risks include smart contract vulnerabilities, custodial risk for T-bill reserves, regulatory changes, and potential T-bill market disruptions (though T-bills are extremely stable). These risks are lower than algorithmic stablecoins.

Bitcoin Stablecoin Backed by Treasury Bills

A Treasury-backed Bitcoin stablecoin is a dollar-pegged token on Bitcoin's layer-2, backed by U.S. Treasury bills. USDB is the first production example, offering BTC holders stable value and T-bill yield without leaving the Bitcoin ecosystem.

Flashnet Team|February 11, 2026

What Is a Treasury-Backed Stablecoin?

Treasury-backed stablecoins are digital dollars backed by U.S. Treasury bills — short-duration government securities widely considered the safest financial asset. Unlike algorithmic stablecoins (which failed spectacularly with UST/Luna) or mixed-reserve stablecoins, Treasury-backed tokens have clear, auditable backing.

The key innovation is that T-bills generate yield (currently 4-5% APY), and Treasury-backed stablecoins pass this yield to holders. You get dollar stability AND government-backed returns, without the complexity of DeFi yield farming.

How USDB's Treasury Backing Works

When USDB is minted, the dollar value is used to purchase short-duration U.S. Treasury bills through regulated financial institutions. These T-bills are held in segregated custodial accounts with regular attestations verifying the 1:1 backing.

Interest from the T-bills accrues to USDB holders automatically. No staking required, no lock-up periods, no smart contract farming. You hold USDB, you earn yield — it's that simple.

When USDB is redeemed, the corresponding T-bills are liquidated to return dollars. The process is fully collateralized at every step.

USDB on Flashnet

USDB is the native stablecoin on Flashnet's trading platform. You can swap BTC for USDB, provide liquidity in BTC/USDB pools, and earn yield from both trading fees and T-bill interest.

Compare USDB yields with other stablecoins using the Stablecoin Yield Tracker.

Related Tools

Stablecoin Yield Tracker

Frequently Asked Questions

What Is USDB Stablecoin?Stablecoin Interest Rates Comparison 2026 How to Convert Bitcoin to Stablecoin

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