Discover how USDY, a yield-bearing stablecoin from Ondo Finance, offers secure, regulated returns backed by US Treasuries across multiple blockchains.

, which are crypto assets pegged to a major fiat asset, have gained tremendous popularity and are helping investors deal with the typical volatility of the market. For many years, stablecoin cryptocurrencies have been used for payments, principal value storage, B2B transactions and more. However, traditional stablecoins have always lacked the ability to generate yield. These assets are fixed at a certain rate (e.g., $1) and, due to inflation, they don’t protect against your funds’ value erosion. 

 have started to gain traction over the past several years. These "new generation" stablecoins, unlike their traditional counterparts, not only provide rate stability but also generate yields, growing your investment over time. One of the leading assets among yield-bearing stablecoins is US Dollar Yield (USDY), issued by Ondo USDY LLC, part of 

Backed by low-risk traditional finance (TradFi) reserves, USDY generates yields and is a fully composable asset that can be used throughout the DeFi ecosystems of multiple blockchains. The reserves and issuance of the stablecoin are also subject to high regulatory controls. In the world of yield-bearing stablecoins, USDY is among the top choices in terms of popularity, regulation and security.

What is the Ondo US Dollar Yield (USDY) Token?

 (USDY) is a yield-bearing stablecoin offered by Ondo USDY LLC, part of the Ondo Finance DeFi solutions provider. 

USDY’s value tracks that of the US dollar, and it’s backed by Treasury bills and demand deposit reserves. The coin issuer’s parent company, Ondo Finance, specializes in institutional-grade crypto solutions. Ondo aims to make on-chain institutional-grade finance tools and infrastructure accessible to anyone.

USDY was launched in August 2023. As of April 2025, the stablecoin has become available on 

 — a level of multichain coverage that few other stablecoins can match.

While USDY’s price tracks the US dollar’s, its rate is typically somewhat higher than $1 because yields earned by each unit of the stablecoin are added to it, increasing its nominal value.

 (RWAs), primarily Treasury bills, although some portion of the reserves may also be represented by bank demand deposits. Both of these financial asset types are considered cash equivalents.

To ensure the Ondo ecosystem's security, Ondo backs each $100 equivalent of USDY with reserves worth $104, maintaining a 4% overcollateralization rate at all times.

Ondo Finance takes the transparency of USDY seriously. The company has established a bankruptcy-remote mechanism, with a separate corporate entity controlling the issuance and oversight of the stablecoin in various ways, including a board of directors with an independent director, and segregation of assets and reporting from Ondo.

USDY is a fully composable asset that can be used in the DeFi ecosystems of its host blockchains for various purposes, such as collateral, 

USDY provides several significant benefits for its holders. First, it allows eligible individual and institutional investors to earn dollar-denominated yield. This is in contrast to traditional stablecoins, which provide no yield opportunities at all. While other yield-bearing stablecoins also generate returns for holders, some of these pay the yields in volatile cryptocurrencies, rather than high-quality assets.

Thanks to its dollar peg, USDY offers both yield and relative stability. Additionally, it’s fully composable, creating opportunities for use across various DeFi protocols. USDY is available on seven blockchains, providing access to more DeFi opportunities than most yield-bearing stablecoins.

The coin may also be used for passive holding, growing in value over time as yields accrue. In this capacity, USDY represents a good low-risk, on-chain investment opportunity.

Finally, USDY’s overcollateralization and backing by high-quality TradFi assets, Treasury bills and demand deposits make it one of the most secure yield-bearing stablecoins on the market.

How does Ondo US Dollar Yield (USDY) work?

Individuals and institutional entities need to undergo an onboarding process to acquire USDY, during which they submit relevant identity, legal and tax documents. Ondo diligently applies 

 (AML) checks in order to adhere to US securities laws, the Investment Company Act of 1940 and other relevant regulations.

US and UK residents cannot apply to buy USDY, although you may be eligible if you’re a US or UK citizen and reside abroad.

If your application is approved, you can be issued USDY 40 to 50 days after your initial deposit date, although you’ll start earning yield from the first day of your investment. The minimum amount for investment or redemption is $500. You can buy USDY from Ondo using the 

 stablecoin. US dollar wire transfers are also supported for amounts over $100,000.

Redemptions are only transferred in US dollars to bank accounts outside the US. You can redeem your USDY investment at any time, and the typical timeline to receive your funds is about 2–3 business days from the date of your request.

USDY accrues yield daily. The stablecoin’s yields are structured not to incur any US federal tax obligations. Ondo doesn’t charge any performance or management fees for USDY yields. However, the company earns income from a portion of yields generated by the underlying assets backing USDY.

As noted earlier, USDY’s yields accrue to each unit of the token. Therefore, the value of one USDY is usually above $1. For instance, the average value of USDY as of the time of this writing (Apr 30, 2025) is $1.11.

For investors who prefer a fixed $1 rate for the stablecoin, Ondo offers the rebasing version, called rUSDY. Yields for rUSDY are paid to your wallet in the form of additional tokens by increasing the supply of the crypto, while the principal remains at (or very close to) $1. This is known as rebasing. USDY and rUSDY are freely convertible between each other.

The rebased version of the coin might be useful to those who need to ensure rate stability (for example, for B2B payments of agreed-upon contractual amounts) while also earning yields from their investments.

 as a swap pair with the USDT stablecoin.

USDY boasts numerous benefits for investors — low-risk yields from high-quality traditional assets, wide multichain coverage, regulatory compliance, transparency, composability and rate stability. The combination of all these benefits is quite rare in the crypto market, and the investor community is definitely taking note: USDY is already the third-highest-ranked yield-bearing stablecoin by market cap as of late April 2025. 

Since the yield-bearing stablecoin niche is expanding, the advantages of the USDY are likely to attract further interest, both among the institutional crowd and with individuals keen to access high-quality, institutional-grade crypto products.

Intermediate

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What is Ondo US Dollar Yield (USDY) and how does it work?

Discover the 7 top Sui meme coins in 2025, from MIU to HIPPO, as they gain traction with fast growth, strong communities, and unique use cases.

 blockchains, have continued to rally as investors make bold moves with renewed risk appetites. As a 

 blockchain, Sui has continued to attract crypto enthusiasts — especially meme coin lovers, who appreciate the platform's speed and affordability.

Recent surges in trading volumes and market caps of SUI meme coins — such as MIU, LOFI and BLUB — highlight growing investor interest. For instance, BLUB experienced an 88% increase in just 24 hours from Apr 22–23, 2025, contributing to the broader rally of SUI as its price surged over 63% in April 2025.

These coins often incorporate unique themes and philanthropic efforts, such as HIPPO's wildlife conservation donations, that foster strong community support.

Let's look at the top Sui meme coins making waves in the crypto market.

​Sui-based meme coins are rapidly gaining traction due to a combination of technological advantages and vibrant community engagement. The 

 parallel transaction execution and unique gas pricing mechanism enable ultrafast transaction speeds and minimal fees. This makes Sui an ideal platform for the high-volume, speculative trading that meme coins often entail. Sui’s scalability and secure Move programming language attract developers seeking efficient and safe environments for launching their new tokens.​

 (DeFi) further supports meme coin growth, providing avenues for increased utility beyond mere speculation. Following are the top ​Sui meme coins based on market cap, as of Apr 30, 2025.

 is currently the leading ​Sui-based “cat meme coin,” with a market cap of $70.6 million. It draws in investors with its fun, energetic branding and community-driven spirit. MIU also features expanded utility beyond its cute cat hype, allowing users to access DeFi and 

 (NFT) opportunities on its platform. It also promotes long-term commitment via its 

 process, as stakers can earn up to 15% APR with 12 months of staking.

The project frequently launches community events and contests, strengthening its dedicated holder base. MIU’s success highlights the growing appetite for meme tokens on scalable blockchains like Sui. Its playful appeal and strong tokenomics have positioned it at the top of the ​Sui meme sector. MIU is a 

 coin: its total supply is 9 trillion tokens, of which 55% are dedicated to a 

, 15% allocated to staking rewards, 15% to ecosystem development, 10% to community and 5% reserved for the team.

MIU continues to ride the wave of growing meme adoption, aiming to become a lasting force within the Sui ecosystem and beyond.

With a market cap of $35.86 million and over 50 million app users, 

 (MEMEFI) is an ambitious Telegram project that blends the world of memes with SocialFi utilities. Unlike typical meme coins that rely solely on hype, MemeFi aims to engage Telegram users with an interactive web3 meme-themed clicker game that offers daily giveaways and incentivizes ad creations for enterprises.

Its native token, MEMEFI, is more than just a mere meme coin, and has use cases for 

You can trade MEMEFI on Bybit’s Spot trading platform (

 is a rising ​Sui meme coin known for its chill "lofi vibes" branding that resonates with a younger, internet-native audience. Beyond its fun appearance, LOFI has demonstrated solid growth by tapping into communities through music, lifestyle and crypto.

The project also ties in eco-conscious initiatives, focusing on providing clean water sources for global communities and addressing the impact of ocean waste and plastic on marine health, giving it a mission-driven angle not typically seen in meme coins. Besides direct donating, minting LOFI Mystic Yetis NFTs also helps contribute to the cause, with 20% of the proceeds going to the LOFI Foundation.

Lofi’s accessible vibe and shrewd marketing strategy continue to attract new supporters, helping LOFI to stand out in the increasingly crowded ​Sui meme scene. 

 (commonly known as HIPPO) is a community favorite in the ​Sui meme world. The HIPPO token mixes humor with philanthropy, donating a portion of its revenues to wildlife conservation initiatives, starting with Thailand’s Khao Kheow Open Zoo that houses Moo Deng, the adorable pygmy hippopotamus that inspired this viral meme coin. This feel-good approach has helped build an extremely loyal community around the HIPPO token.

Sudeng’s dual focus on memes and real-world impact gives it staying power. The project’s growing community engagement ensures that HIPPO remains relevant in a fast-moving crypto space.

You can buy HIPPO as a USDT Perpetual contract on Bybit (

 is making waves in the ​Sui meme coin ecosystem with its aquatic-themed branding and integration of meme culture. Known for its friendly, community-first approach, BLUB frequently hosts giveaways, meme competitions and liquidity incentives to maximize engagement.

The coin’s fun branding and its steady increase in active users have helped BLUB climb the ranks quickly. Its strong online presence and viral meme campaigns have attracted crypto enthusiasts who are looking for the next breakout meme project. As it continues building partnerships and expanding its reach, BLUB demonstrates strong potential to become a staple in the Sui meme scene.

 (TOILET) is a rising meme coin on ​Sui that embraces humor and absurdity in a way that resonates with crypto culture. Its branding focuses on being intentionally ridiculous, tapping into the viral tone of meme coins that don't take themselves too seriously.

The project’s organic, community-driven growth has made it one of the most talked-about newer entrants in the ​Sui meme space. Frequent meme contests, community raids and spontaneous airdrops help fuel engagement. One of its biggest events is the distribution of Toilet Club Alpha Pass NFTs to the top 100 TOILET holders (as indicated by the Apr 21, 2025 screenshot), which gives holders access to all of Toilet Dust's projects and events and the right to vote on Toilet Dust's future development.

Despite its humorous façade, TOILET’s strong holder base and active marketing tactics suggest it may remain relevant as Sui’s meme coin ecosystem continues to expand.

 (FUD), another top project in the ​Sui meme coin category, is built around an adorable pug mascot battling FUD (fear, uncertainty and doubt) in the crypto world. With a humorous tone and clever marketing, FUD has built a vibrant community of holders who embrace both its memes and its mission.

FUD leverages trending memes, contests and airdrop rewards to keep its community marketing fresh and viral, helping it steadily grow in popularity. Its deep integration of ​Sui apps like 

 — as well as its deflationary tokenomics, whereby 20% is dedicated to token burning — makes FUD a strong contender for future growth in the meme space.

Buying ​Sui meme coins on Bybit can be exciting. Nevertheless, it's important to recognize the risks and rewards involved. 

, and their prices can swing wildly and quickly, offering chances for sizeable gains as well as sudden losses.

Always approach these investments with caution, never risking more than you can afford to lose. That said, the fast-growing ​Sui ecosystem and meme culture can create rewarding opportunities for traders who stay informed and manage their risk properly.

Currently, you can buy MEMEFI as a Spot pair and Perpetual contract on Bybit. HIPPO is also available as a Perpetual contract. This gives traders the flexibility to choose the type of exposure they want — simple buying and holding with Spot, or leveraged trading with Perpetual contracts.

Spot trading is the most straightforward way to buy ​Sui meme coins, as you directly purchase the coin and own it outright. On Bybit, the process is simple. After choosing the Spot pair, such as MEMEFI/USDT, select your preferred order type — e.g., 

(you set the price you're willing to pay) — and confirm the trade to make your purchase.

Spot trading is ideal for beginning traders, as well as anyone who prefers a more straightforward, lower-risk approach as compared to 

Buying Sui meme coins as Perpetual contracts

Bybit offers MEMEFI and HIPPO as USDT Perpetual contracts for those seeking more advanced trading options. With Perpetual trading, you don’t own the actual coins; instead, you speculate on their price movement. Key points to understand include the following:

Perpetual contracts can offer significant rewards, but require a strong understanding of 

. Always start with lower leverage and practice solid trading discipline.

Whether you prefer the simplicity of Spot or the strategy of Perps, Bybit provides flexible ways to explore the booming ​Sui meme coin market.

The rapid rise of meme coins on the Sui blockchain highlights the power of community-driven projects when they’re paired with innovative technology. Thanks to Sui’s high-speed transactions, low fees and developer-friendly environment, Sui meme coins like MIU, LOFI and HIPPO have found a perfect ecosystem in which to thrive. Each project brings something unique to the table — whether humor, philanthropy, DeFi innovation or pure meme culture — creating a vibrant and diverse ​Sui meme coin landscape.

Beginner

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7 top Sui meme coins to pay attention to in 2025

Mastercard has partnered with Circle, Paxos, and Nuvei to allow 150 million merchants to accept stablecoin payments. 

Daily top performer — Drift Protocol (DRIFT)

The S&P 500 rose 0.58% for a sixth straight gain as markets await key inflation and GDP data, alongside earnings from Meta and Microsoft. Gold fell 0.60% to $3,323 as a stronger USD and improved risk appetite limited safe-haven demand. Prices remained range-bound, with key levels at $3,260 support and $3,400 resistance. The Coindesk Indices, which tracks the broader crypto market, rose 0.51%, with Bitcoin and Ether up 0.55% and 1.31%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is DRIFT, which surged 28.7% following the introduction of Amplify, Drift's tool for simplified leverage that boosts yields with increased risk.

Drift Protocol (DRIFT), founded in 2021, is a decentralized exchange (DEX) on Solana offering spot trading, perpetuals, and market-making tools. Drift v2 builds on this by improving trading efficiency, security, and user-centric features, incorporating community feedback to enhance the platform. 

 by Drift automates leveraging strategies for higher yields by recursively borrowing against yield-generating assets. It simplifies the process, making leverage accessible with one click. However, risks such as liquidation, changing interest rates, and oracle failures exist. Amplify is designed for users with JLP or SOL LSTs seeking to boost yields with minimal complexity but comes with increased risk.

Check out the latest prices, charts, and data of 

 with Circle, Paxos, and Nuvei to allow 150 million merchants to accept stablecoin payments. The company aims to make it easier for both merchants and consumers to use stablecoins, promoting blockchain technology's mainstream adoption. Additionally, Mastercard has launched a crypto payments card with MetaMask, enabling self-custodied fund transactions with fast processing speeds. Stablecoin market growth is expected to reach $3.7 trillion by 2030.

Yesterday, Bitcoin spot ETFs saw $43.9 million in net outflows, all from non-GBTC funds, while GBTC recorded zero flows.

, a Layer-1 blockchain focused on AI agents and user-owned IP, is offering a limited-time free ticket to its Summit Series for the next 18 hours. Users can also join the Camp Points Program by completing simple tasks to earn points, which may qualify them for a future $CAMP token airdrop. A minimum of 30 points is required to be eligible. Daily check-ins earn bonus points. VPN use may be needed for access.

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Mastercard partners with Circle, Paxos, and Nuvei to enable stablecoin payments for 150 million merchants

Gold's meteoric rise in 2025 is closely tied to broader macroeconomic factors, particularly the performance of the US dollar and global stock markets. 

Gold's meteoric rise in 2025 is closely tied to broader macroeconomic factors, particularly the performance of the US dollar and global stock markets. A weakening dollar, combined with disappointing equity returns, has created a fertile environment for gold to thrive. With gold priced in dollars, any depreciation in the US currency enhances gold's relative value, attracting both domestic and international investors.

Year-to-date, gold has gained 26%, while the S&P 500 has declined by 11%. This inverse relationship underscores gold's role as a traditional 

 during periods of economic uncertainty and market volatility.

Adding to the bullish momentum, inflationary pressures are remaining persistent, further eroding the purchasing power of fiat currencies and boosting gold's appeal as a hedge against currency devaluation.

Geopolitical uncertainty and tariff risks

Trade policies under U.S. president Trump have reignited fears of global tariff wars. The uncertainty surrounding tariffs has prompted investors to seek refuge in gold, considered the "global currency" during times of economic disruption. Concerns about tariffs on key commodities, including gold itself, have added another layer of complexity to market dynamics.

Potential tariffs on gold could mirror the recent surge in copper prices, as supply constraints and increased demand drive costs higher. Exporters and importers, wary of volatile exchange rates, are increasingly opting to hold gold instead of more vulnerable currencies like the Canadian dollar (CAD), Japanese yen (JPY), euro (EUR), Chinese yuan (CNY) and Mexican peso (MXN).

By serving as a neutral reserve asset, gold provides much-needed stability amid shifting trade patterns and geopolitical tensions. As global commerce adapts to new tariff structures, the demand for gold as a "store of value" is likely to intensify.

Interestingly, the ongoing trade war dynamics suggest that for the first time in decades, gold may be emerging as the 

. As U.S. imports become more expensive due to tariffs, exporting countries earn less revenue and, consequently, reduce their investments in US Treasuries. This dynamic has led to selling pressure on Treasuries, weakening their traditional role as a safe-haven asset — and with Treasuries losing their appeal, investors are increasingly parking their capital in gold, reinforcing its unique position during this period of heightened trade tensions.

From a technical standpoint, gold's rally appears robust. The 

 (MACD) indicator remains positive, signaling that bullish momentum is intact. Notably, the 12-day moving average is above the 26-day moving average, confirming that short-term price action is outpacing longer-term trends.

 (RSI) stands at 60, indicating that while gold is nearing overbought territory, momentum hasn’t yet faded. This technical setup suggests that gold could continue its upward trajectory in the near term, especially if macroeconomic and geopolitical factors remain supportive.

The next upside technical target is pegged at $3,500, with analysts projecting a potential move toward $4,000 by year end if current momentum holds.

China's role in supporting gold prices cannot be overstated. Amid a deepening economic slowdown and strict capital controls, Chinese investors are increasingly turning to gold to preserve their wealth. With over 1.4 billion citizens seeking alternatives to a weakening yuan, demand for gold within China has surged.

This trend is reflective of a broader shift in emerging markets, whereby gold is viewed not just as an investment but as a critical safeguard against economic instability and currency depreciation. Intensifying Chinese demand provides an additional tailwind to global gold prices.

While gold commands the spotlight, silver presents an intriguing complementary opportunity. Historically correlated with gold, silver remains significantly below its ATH of $50, which was set in 2011. Given the momentum in precious metals, silver's relative undervaluation offers considerable upside potential for investors seeking diversification.

With industrial demand also supporting silver prices, silver could benefit from both safe-haven inflows and economic recovery scenarios, making it a compelling addition to a diversified precious metals portfolio.

In conclusion, gold's impressive surge to record highs is being driven by a combination of macroeconomic headwinds, geopolitical uncertainty and strong technical indicators. Trade policy risks, the weakening dollar and growing demand from China reinforce gold's role as a premier safe-haven asset.

Because technical momentum remains positive and investor sentiment strong, gold appears well positioned to continue its ascent toward the $3,500 mark by year end. Investors seeking to hedge against economic instability and currency volatility will likely find gold — and potentially silver — to be attractive additions to their portfolios in 2025.

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Bybit X FXStreet Report: Gold could reach US$4,000 per ounce by 2025

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Crypto

As cryptocurrrencies gain more popularity, more governments are looking into developing their own CBDCs. Find out what they are and what they aim to achieve.

Lately, many people have been talking about CBDCs and their potential development. As the world shifts more toward cashless payments and 

, CBDCs are especially getting more attention from governments around the world. This guide will cover more about what they are, how they work, where they’re available, their future, and how they compare to 

In the world of finance, the term ”fiat” refers to a currency that’s backed by a government, instead of assets such as gold. It’s typically been used in the form of tangible coins or banknotes. With the rise of technology and digital transactions, some governments have developed ways to supplement fiat currency with a digital credit model. Transactions using this model are digitally recorded. 

Although countries still use and accept standard currencies, the use of cash is decreasing in many places. More people are using credit cards, debit cards or e-wallets for transactions. CBDCs and their development gained more attention during the widespread shutdowns associated with the COVID-19 pandemic that began in 2020. 

As more people around the world are showing favor toward cashless payment systems and cryptocurrency use, governments are looking for ways to offer digital currencies as they realize their potential benefits. Currently, only a few countries have issued digital currencies.

Since countries today use fiat as their national currencies, a CBDC is often referred to as a 

, each of which has its own unique identification that prevents counterfeiting. 

Although CBDC payments are digital, they aren’t like electronic checks, which are essentially instructions for a bank to send money from an account holder to a recipient. To process standard digital payments, several parties must be involved in order to handle money, verify transfers, and complete other activities. 

Alternately, CBDCs are conceptualized to be more like cryptocurrencies, eliminating these intermediary parties. CBDC payments can travel directly from one account holder to another.

An additional similarity between cryptocurrencies and CBDCs is their dependence on a network that validates and tracks them. Cryptocurrencies use 

, which adds the benefit of anonymity while ensuring transactions are recorded on a digital ledger. 

While a CBDC could function on a blockchain, it’s usually connected instead to a central database that’s controlled by the issuing bank. The central bank is responsible for providing each piece of the currency, with a unique identification number for tracking. Central banks that utilize a digital currency may also attach it to the country's national currency.

CBDCs that are backed by fiat remain valid, regardless of payment systems that transfer or store it, and they may be transmitted through many types of digital payment systems. To make CBDCs more accessible to everyone in a country, proposals for these currencies often include requirements for all citizens to have an account with the issuing central bank.

Multiple factors drive any central bank digital currency. First, there’s a need for sovereignty.

 is one component of a healthy financial system and economic growth within a country. A central bank digital currency can bring back the central bank to the center of creating currency and building trust. Another driver of

 is the need to make financial systems more efficient.

Two other common driving factors of a central bank digital currency are the need for better financial inclusion policies and the need to improve access to financial systems for people who lack it, sometimes referred to as 

 people. In many countries, poorer populations rely heavily on cash, and that may be a barrier. However, central banks can develop open, two-tiered systems that convey more value to such individuals. 

A final driver behind CBDCs is the need to improve fiscal and monetary policies. The digital tokens can minimize liquidity squeezes, and give a nation's citizens an easy-to-access alternative to other payment methods.

Some potential achievements that CBDCs can produce address the factors covered in the last part of the previous section. However, governments may have some broader goals as well. These are the main objectives that governments hope to achieve with a central bank digital currency:

There are many conceptual ideas for CBDCs in countries which are considering, but haven’t yet released, digital currencies. The last point in the previous list is especially important to consider in conceptualization and implementation. 

To Gain More Popularity Than Cryptocurrencies

In order for a central bank digital currency to hold its power, it must be able to maintain popularity in its use. Governments must consider the possibility of lower rate transmission, and how that can hurt a digital currency.

When people in a country use currencies that aren’t part of its sovereign currency, there’s a risk that its use can dwindle. For example, many people today use cryptocurrencies, and there are more crypto stablecoins being developed all the time. If there’s a shift in a given country toward greater use of a few leading cryptocurrencies instead of its own CBDC, that subtracts from its power. 

Since cryptocurrencies are backed by blockchains and offer anonymity to users, they can be highly attractive. Competitive benefits are issues governments must consider when planning or considering the use of CBDCs, as well as how to convey their value to the population.

There are still many potential benefits to a central bank digital currency. Governments must look for opportunities to mitigate threats and risks if they want to build a strong digital currency. Additionally, such challenges provide a way for governments to work with and strengthen domestic private payment systems to maximize efficiency, and to make them more fitting for the designed purposes. Doing this can also create ways to improve international payment systems.

To achieve their objectives, governments must plan CBDCs to solve problems, and must convey their differences and benefits. For example, a national digital currency is backed by the central bank, not by commercial banks. A government must find the advantages of such a structure, and convey how it solves problems for the people in that regard. However, a common obstacle for many governments may be the issue of trust in countries where there’s already widespread lack of faith in the national government.

There are two main forms of CBDCs, which fit different purposes. A national currency system doesn’t need to only use one. In the upcoming section, some examples of hybrid systems will be covered.

These types of government-backed currencies are for businesses and consumers to use. The purpose of a retail CBDC is to eliminate the risks of private currency issuers going bankrupt and customers losing money. With retail CBDCs, there are two types. 

The first is structured as an account. For access, a form of digital identification is required. There’s also a token structure, which uses private or public keys. The main difference with a token-based structure is that it allows anonymity for users, since it requires a token instead of user identification.

Similar to a central bank's holding reserves, wholesale CBDCs allow central banks to offer accounts for users to transfer funds. The bank settles interbank transfers and uses its monetary policies to assign interest rates and effect lending activity. 

The main difference between this structure and retail is that wholesale makes financial institutions the intermediaries between customers and the banks. With a retail structure, the relationship between central banks and citizens is more direct.

, a couple of them with designs similar to stablecoins. There are also governments currently developing CBDC test projects. 

 published a survey in early 2022 and found that 87 countries — almost half the world’s nations — were considering issuing CBDCs. This finding is significant since research from 2020 showed that only 35 countries were considering developing their own digital national currencies at that time. The following sections cover important points about some countries that have either already launched a digital currency or have favorable plans for one.

Nigeria launched its digital currency in 2021, becoming the first country in Africa to do so. The currency is called 

 and is available to users through a digital wallet. People in Nigeria can use the currency for contactless payments in stores, and can send money transfers with it. 

The eNaira uses a hybrid system that includes wholesale and retail CBDC structures to allow greater flexibility and improved financial access to citizens. Nigeria's central bank issues the currency, and citizens hold it directly in their digital wallets. The currency is backed by the 

 blockchain, which is a permissioned and private network that IBM designed.

The Bahamas issued a digital currency called the 

 in 2020, the first CBDC in the world to cover a whole country. 

Sand Dollars are backed by both wholesale and retail application structures. The Sand Dollar is not a cryptocurrency. Its network uses multi-factor authentication and digital ID solutions to protect users. Bahamians hold Sand Dollars directly in digital wallets. 

 solutions and offers offline functionality for times when communications between the islands are down. With its rapid validation, transactions can be nearly instantaneous. While all of these points sound attractive, the country is still working out some issues with the currency. Not yet widely used, it comprises about 0.1% of circulated currency in The Bahamas as of 2022.

China was the first large country to test the use of a digital currency in 2020. Also called the digital yuan, the 

 was expected to be commonplace by 2022. Strategically, China pushed the use of eCNY during the recent Winter Olympic Games in Beijing. 

 is about 10,000 transactions per second (

), and the country hopes to boost that to 300,000 per second soon. 

However, the system still falls short of the capabilities offered by Tenpay or Alipay, which are leaders in the country. In late 2021, there were 261 million wallets associated with the eCNY, and that number doubled by the end of the 2022 Winter Olympic Games. 

Furthermore, eCNY isn’t backed by a blockchain. There is a centralized network that is supervised by the People's Bank of China, which is the country's central bank. Unlike the hybrid systems used in some other countries, China's

 is primarily a retail CBDC that’s issued to the public for retail transactions.

 a test program for a CBDC in 2020, and the government plans to continue its testing program for international transactions. The French digital currency was designed for settling interbank transactions. With a digital bond design, the currency was backed with a blockchain. Banque de France partnered with HSBC and IBM to conduct the programs. 

Since its wholesale CBDC project showed promising results, the country is also considering a retail structure to potentially offer citizens more payment flexibility and access in the future. As of 2022, the country has not officially made its currency available to citizens.

In early 2022, Canada's central bank announced a collaborative project with the 

 to develop a digital currency that’s somewhat different in conception from those above. However, there have been talks of developing one since 2020. 

Once developed, the CBDC would be a digital version of the existing Canadian dollar. The purpose of developing it, according to the

, is to have a backup currency available if needed. Canada's plans are in place primarily to adapt to changing trends.

 and cryptocurrency trading have elicited plenty of criticism. Recently, the Bank of Korea (BOK) announced plans to potentially issue a CBDC. However, in the past it has been against the idea. 

 that incorporates wholesale and retail applications for its CBDC. The plans for the central bank digital currency are already serious, and the country is talking about potentially implementing it by 2023 and enforcing rules surrounding it by 2024. However, unlike China's digital yuan, the South Korean digital won would be controlled by a distributed ledger, instead of using a central control structure.

, which is a digital version of its standard krona that it began conceptualizing in 2017. The reasons behind launching the eKrona are the declining use of cash and the fear that shifting trends could make state-issued money obsolete. 

For Sweden's plans, the CBDC it hopes to issue incorporates a hybrid system that encompasses both wholesale and retail elements. The pilot program uses token verification with transaction history, which could encounter some privacy issues that may violate strict EU privacy laws with the current structure. Any issues related to 

/blockchain solutions must be solved before the eKrona can be issued to citizens.

While it may sound like CBDCs and stablecoins are similar, they have some distinct differences. 

A key difference is that CBDCs are legal tender issued by governments or central financial authorities, to be used as standard currency, and stablecoins are virtual digital assets that are private and tied to a currency. Both types of currencies are digital assets. However, stablecoins use blockchains. Although CBDCs can be backed with blockchains, many are not. Both can support private transactions. 

Another main difference between the two is their monetary systems. A CBDC is regulated and monitored by the nation's authorities using a centralized system, while a cryptocurrency isn’t regulated, since it’s decentralized. Another difference is what the currencies achieve. While a CBDC preserves a national banking system's 

, stablecoins democratize global financial systems. 

 last month, there was much talk about tightening regulations on stablecoins in several countries. In fact, some government leaders said that it was the government's duty to protect citizens from financial disasters. National governments around the world also want to ensure that they can protect their power to control currency. 

Governments are looking for ways to regulate crypto stablecoins and limit their power, and regulators have expressed their concerns over a lack of guidelines and rules for stablecoins. 

Since cryptocurrencies are growing in popularity, regulators are only going to become more interested in restricting them as time passes. This means that CBDCs will also get more attention as governments look for strategies to keep up with shifting payment and currency trends around the globe. 

Along with the testing some countries are conducting, the recent growth in the number of countries that have expressed intentions to develop their own CBDCs are significant factors that show how serious many countries are about central bank digital currencies.

If CBDCs become more common in the near future, they could solve accessibility issues and mitigate some risks of national financial systems if they’re well-designed and work as intended. However, the restrictions that nations want to put on stablecoins, along with the development of those digital currencies, present potential challenges for investors to monitor.

What Are CBDCs & Why Is Everyone Talking About Them?

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