KEY TAKEAWAYS
- Stablecoins are essential for protecting wealth in Latin America, but yieldcoins like USDY offer additional benefits by providing yield secured by US Treasuries.
- Capa integrates with Ondo Finance’s USDY on Solana, enabling users in Mexico and the Dominican Republic to access US treasury-backed yield easily.
- USDY on Solana offers daily compounding yields, enhancing financial empowerment for Latin American users by providing seamless access to global financial opportunities.
- The collaboration between Capa and USDY on Solana represents a significant advancement in decentralized finance, tailored to meet the economic needs of Latin America.
In Latin America, the need to protect against local currency volatility and inflation has made saving in stable currencies like the US dollar an economic necessity. Stablecoins have become a popular means of accessing a global digital dollar, allowing millions to safeguard their wealth. However, stablecoins alone are no longer sufficient.
The next evolution in this financial landscape is yieldcoins, which offer the benefits of stablecoins—such as permissionless transactions, composability, and seamless transferability—along with the added advantage of yield secured by short-term US Treasuries. Through its integration with Ondo Finance’s USDY on Solana, Capa is now bringing this innovative financial tool directly to users in Mexico and the Dominican Republic.
How Capa and USDY Enhance Financial Access
Capa is an intuitive crypto-fiat ramp designed for simplicity and ease of access. It enables users to quickly transfer funds from their local bank accounts in Mexico and the Dominican Republic into crypto wallets, connecting them seamlessly to global liquidity.
The integration of Ondo Finance’s USDY, the most widely adopted yieldcoin backed by short-term US Treasuries, allows global, non-US investors to gain exposure to yield collateralized by these Treasuries. USDY is the largest tokenized treasury on Solana, with over $170 million in total value locked (TVL). It provides direct access to a high-quality dollar savings solution, behaving like an on-chain savings asset that accrues yield daily without requiring active asset management.
On Capa, users in Mexico and the Dominican Republic can effortlessly onboard with pesos directly from their local banks and immediately benefit from US treasury-backed yield, all within their preferred wallets and without complex blockchain interactions.
Benefits of USDY on Solana for Latin American Users
Unlike traditional stablecoins, USDY not only preserves wealth but also actively grows it by offering daily compounding yields transparently secured by some of the world’s safest assets. With USDY now accessible through Capa on Solana, users across Latin America can protect against local currency inflation by securing their savings in a US dollar-backed yieldcoin.
Users benefit from daily yield accrual without the need for complex asset management, gaining financial empowerment by accessing global financial opportunities seamlessly from home. Additionally, they enjoy instant liquidity, allowing them to quickly and effortlessly cash out via Capa when needed.
USDY is supported on Solana, a blockchain known for its speed, scalability, and low-cost transactions, making it ideally suited for improving global access to traditional financial services. Together with Capa, USDY on Solana provides robust financial rails specifically designed for Latin America’s unique economic needs. This integration represents the future of decentralized finance, blending the benefits of yield, access, and frictionless transfers, and empowering users across Latin America to easily save, earn, and manage their money.
For more details, visit the announcement here.
Why This Matters: Impact, Industry Trends & Expert Insights
The introduction of yieldcoins like USDY in Latin America marks a significant advancement in the region’s financial landscape, offering users the ability to earn yields while maintaining the stability of US dollar-backed assets. This development is particularly impactful in regions like Mexico and the Dominican Republic where local currency volatility is a concern.
A recent report highlights the increasing adoption of yield-generating stablecoins in Latin America, driven by economic instability and high inflation rates. This aligns with the introduction of USDY, which offers a stable means of preserving and growing wealth in the region.
While specific expert opinions on yieldcoins in Latin America are scarce, general insights into yield farming suggest it could offer new financial opportunities, despite inherent risks such as market volatility. This supports the potential impact of USDY as a tool for financial empowerment and inclusion in Latin America.
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