Backed's Tokenized RWAs to Enable PYUSD Loans on Morpho Blue

PayPal's USD stablecoin, PYUSD, can now be used to earn yield in Morpho Blue. Morpho Blue is Morpho's new decentralized lending protocol. It allows anyone to create lending markets with any assets. This unique feature enabledSteakhouse Financial to curate a PYUSD vault on Morpho Blue.

Steakhouse Financial is using two assets as the principal collateral assets of the vault. The first is Backed's wrapped tokenized Treasury Bill (blB01 token). The other is Lido's wstETH liquid staking token.

The combination creates a dual engine of yield.It is an approach that optimizes returns across different market conditions by combining real-world and crypto yields. Backed enables this unique approach with its bTokens - tokenized real-world assets (RWAs).

Backed’s bTokens track the value of real-world assets such as stocks or ETFs. bTokens are fully collateralized by the underlying assets, and they are traded over the blockchain in compliance with the Swiss DLT Act. bTokens can be permissionless or permissioned.

Adam Levi, Co-founder at Backed, explains:

“At Backed, we’re creating the most composable and interoperable tokenized real-world assets. We focus on providing best-in-class reliability for our investors,and are looking forward to seeing bToken’s increased adoption in new lending markets.”

Integrating with Morpho Blue is the first time that PYUSD has been added to a major lending market. This is the latest DeFi-friendly move made by the stablecoin. Recently, PYUSD enabled Chainlink Price Feeds for reliable on-chain data.

Additionally, this is exactly the kind of integration that Morpho Blue was built for.

Paul Frambot, Co-founder and CEO at Morpho Labs, says, "At Morpho we believe protocols should do less to enable more. Morpho Blue is a remarkably simple protocol that facilitates lending of any asset. We are excited to see its permissionless market creation being used to support the adoption of PYUSD.”

This move further underscores PayPal's commitment to fostering a vibrant DeFi ecosystem. PYUSD is one of the top 10 stablecoins, and PayPal appears committed to developing PYUSD into a serious competitor in the stablecoin arena. PYUSD is issued by Paxos for PayPal. It is under the supervision of the New York State Department of Financial Services (NYDFS).