Eight USD and credit products: what they do and who pays the return

The simple version

These are not eight versions of a savings account.

• RLUSD and USDat pay no return to the person holding them. Their issuers keep the income earned by the assets backing the tokens.
• The other products seek returns by putting money into business advances, home-equity loans, reinsurance, institutional loans, or managed bond and credit portfolios.
• The extra return is payment for taking extra risk: a borrower may not repay, an investment may lose value, or cash may not be available when we want to withdraw.

For each product, the useful questions are: What happens to our money? Who pays us? How do we get our money back?

At a glance

3Jane — USD3 and sUSD3

• What it does. A user deposits USDC. 3Jane either places unused cash on Aave, a large on-chain lending market, or advances it to merchants and software businesses against their expected future income. The user receives USD3 and can move into sUSD3 for a riskier share of the same pool. USD3 is paid first; sUSD3 receives what remains and takes losses first.
• Where the return comes from. The intended sources are interest from Aave and financing charges paid by the businesses receiving advances. However, 3Jane’s documents describe different launch phases, including one in which USD3 received token incentives rather than the pool’s lending income. The current split between USD3 and sUSD3 needs confirmation.
• How you get out. sUSD3 is initially locked for one month. After that, withdrawals depend on how much cash remains in the pool; if much of the money has been lent out or many investors leave together, repayment may be delayed.
• What can go wrong. 3Jane decides which businesses are creditworthy and must pursue them off-chain if they do not pay. That makes this closer to a small-business credit fund than a normal stablecoin.

Sources: 3Jane whitepaper, pool-rate documentation, FAQ, advance agreement.

Hastra — PRIME

• What it does. PRIME is a tokenized share of a structure ultimately backed by home-equity lines of credit originated by Figure. A home-equity line lets a homeowner borrow against the value of their house. The chain is: home-equity loans → YLDS/wYLDS → PRIME. PRIME holders do not receive more tokens over time; each token’s redemption value is intended to rise.
• Where the return comes from. Homeowners pay interest on the amounts they actually borrow. Hastra passes through the pool’s loan rate after deducting its stated 0.50% annual fee.
• How you get out. PRIME can be converted back to wYLDS. Converting wYLDS into USDC is a separate process handled through Hastra’s operating flow, not one automatic on-chain swap.
• What can go wrong. Investors depend on the homeowners repaying, Figure servicing the loans, and Hastra’s token, pricing, and redemption systems continuing to work. The multiple layers make the legal claim and the true time-to-cash important diligence items.

Sources: PRIME overview, wYLDS overview, rate methodology, integration guide.

Ripple — RLUSD

• What it does. RLUSD is digital settlement cash intended to remain worth one dollar. Standard Custody & Trust Company, a Ripple subsidiary, issues it and holds cash and short-term US government-backed assets against the tokens.
• Where the return comes from. Holding RLUSD alone pays nothing. The reserve assets earn income, but Ripple keeps that income. If a Morpho vault or another venue advertises an RLUSD return, that return comes from borrowers or incentives in that separate venue, with separate risks.
• How you get out. Approved Ripple customers can exchange RLUSD directly for dollars under Ripple’s terms. Everyone else must sell or transfer it in a market, where the obtainable price may differ from one dollar.
• What can go wrong. The main stablecoin risks are the issuer and reserve structure, restricted access to direct redemption, and Ripple’s ability to block addresses or stop transfers. A yield strategy adds another layer that must be assessed separately.

Sources: RLUSD terms, reserve transparency.

Re Protocol — reUSD

• What it does. reUSD supplies capital to a reinsurance business. In plain terms, the money is passed through a protected trust into a loan-like instrument used by a reinsurer. If the insurer suffers losses, insurance policyholders are paid before reUSD investors. The product calls itself “principal protected,” but the legal terms still allow investor losses.
• Where the return comes from. Re sets the target return at 2.5 percentage points above the higher of two reference rates: a short-term low-risk rate or a crypto market-neutral trading-rate benchmark. That formula explains how the target is set, not exactly how the money is earned. Economically, investors are being paid for supplying junior capital to the reinsurer; the executed counterparty agreement and source of the extra spread still need verification.
• How you get out. Withdrawals can be immediate while a cash buffer is available. Once that cash is used, holders must wait. Re’s official pages disagree on whether the slower withdrawal window is monthly or quarterly. Selling through Curve may be faster, but depends on finding buyers and may return less than the stated token value.
• What can go wrong. The key risks are insurer losses, the enforceability of the off-chain structure, and insufficient cash for withdrawals. We would need the signed financing agreement, named reinsurer, current assets and insurance liabilities, and one authoritative redemption timetable.

Sources: reUSD overview, protocol mechanics, redemption documentation, legal terms.

FalconX — Pareto loan vault

• What it does. Investors supply USDC to a separate lending vehicle. FalconX uses it to make secured loans to institutional trading firms. M11 oversees the vault and Pareto supplies the on-chain infrastructure.
• Where the return comes from. The institutional borrowers pay fixed interest. Their collateral is protection against non-payment; the collateral itself does not create the return.
• How you get out. The documented vault is limited to verified investors and operates in monthly periods. A withdrawal requires one month’s notice, and the exact timing and fees must be matched to the specific vehicle offered to NOCA.
• What can go wrong. If a borrower defaults, FalconX must value, access, and sell the collateral. Investors can lose money if the collateral is insufficient, trapped on a trading venue, or falls in value before it can be sold.

Sources: FalconX launch disclosure, FalconX–Sygnum structure, Pareto live-vault terms.

Midas — mF-ONE

• What it does. mF-ONE is a fund-like token issued by Midas. Its price follows a portfolio managed by Fasanara containing private loans and digital-asset investments. It is not designed to remain worth one dollar, so its value can rise or fall. Holding the token is not the same as directly owning every underlying loan.
• Where the return comes from. Returns may come from interest paid on private loans and from gains in the digital-asset strategy, less Midas’s stated 0.40% annual management fee. Losses or weaker valuations can reduce the token price. The public product page does not provide enough detail to verify the current mix of income.
• How you get out. Redemption is immediate only while Midas has cash available. Otherwise the manager must provide more liquidity, and the product page does not guarantee how quickly that will happen.
• What can go wrong. Investors rely on Fasanara’s investing and valuation, Midas’s legal structure and pricing, and the availability of redemption cash. We need current holdings, borrower losses, valuation policy, custody, and committed rather than advertised liquidity.

Sources: mF-ONE product page, Midas product structure, Midas pricing.

Midas — mWIN

• What it does. Midas describes mWIN as following a Wellington-managed portfolio of higher-priority, investment-grade credit. The assets include corporate bonds and securities made from pools of corporate loans, commercial mortgages, home mortgages, and other asset-backed debt. “Higher-priority” means these securities are generally paid before lower-ranking investors; it does not mean they cannot lose money.
• Where the return comes from. Companies and other borrowers pay interest on the bonds and loans. Those recurring interest payments are the likely income source. Changes in interest rates and credit conditions can also move the portfolio’s price up or down, but a price gain is not the same as dependable yield.
• How you get out. Unverified. The first-party product index describes the investment mandate but does not establish binding redemption timing, available cash, or fees.
• What can go wrong. The reviewed material does not yet show exactly what the token holder legally owns, which assets are currently held, how income reaches holders, or who bears losses. Offering documents and current portfolio reporting are required before sizing it.

Source: Midas first-party product index.

Saturn — USDat

• What it does. USDat is a permissioned stablecoin described by Saturn as fully backed by M. M is an M0 token designed to represent short-term US Treasury exposure. Approved users deposit USDC or M to create USDat.
• Where the return comes from. Holding USDat alone pays nothing. M earns reserve income, but Saturn directs that income to its own revenue vault. Saturn’s separate sUSDat product uses investor money to buy STRC, a preferred share issued by Strategy. Strategy may pay dividends on STRC, but those dividends can be deferred and STRC ranks behind Strategy’s debt. That is a different investment with materially more risk.
• How you get out. Approved users first convert USDat into Wrapped M, then sell Wrapped M for USDC through a market pool. The final amount therefore depends on market liquidity and price; it is not a simple contractual exchange for one dollar of cash.
• What can go wrong. The reviewed materials do not clearly identify the product-specific legal issuer or the holder’s enforceable claim. Investors also rely on M, permission controls, and enough market liquidity to complete the final USDC sale.

Sources: USDat overview, mint and redeem, sUSDat overview, STRC strategy, Strategy STRC filing.

Shared diligence rule

Before treating any of the yield-bearing products as investable, verify four things once against the exact vehicle and contracts offered to NOCA:

1. Who legally owes us money.
2. What assets and borrowers are in the portfolio today.
3. Who takes the first loss and how past losses were handled.
4. How much can be converted back to USDC immediately and under stress.