In a significant development for the intersection of blockchain technology and traditional finance, a new startup named STBL has emerged, aiming to transform how digital assets are handled. Inspired by the conventional finance model of separating capital from interest payments, STBL is pioneering a method to tokenize assets by converting them into a dollar-pegged stablecoin, alongside a yield-bearing non-fungible token (NFT).
The innovative design of STBL emulates zero-coupon strip structures commonly used in traditional finance. This approach allows investors to manage their risk exposure more effectively; they can opt to keep the aspect of an investment that suits their risk profile while selling off the other component to more risk-tolerant counterparties.
Currently in beta testing, STBL is not just offering a novel product but is also disrupting the established stablecoin issuance model. In the realm of traditional stablecoins such as Tether (USDT), the issuing entity retains the earnings from the Treasuries backing the token, creating substantial profits—as evidenced by Tether’s reported $4.9 billion net profit in the second quarter. In stark contrast, STBL allows anyone who deposits a tokenized asset into its system to become a minter, thereby enabling them to retain the earnings generated.
Reeve Collins, co-founder of STBL and former co-founder of Tether, articulates the mission of STBL, asserting that it strives to transition stablecoins from being corporate products to a form of public infrastructure. This shift encapsulates the essence of what Collins describes as “Stablecoin 2.0,” where minters—not issuers—retain the underlying value of reserves. The aim is to create a monetary framework that is stable, compliant, and community-focused.
When users deposit yield-bearing on-chain assets into the STBL protocol—assets that could include anything from Franklin Templeton’s BENJI to BlackRock’s BUIDL—they receive a stablecoin, referred to as USST, along with an NFT called YLD that accrues yield. This function helps keep the system compliant with U.S. regulations, particularly the GENIUS Act, by distinctly separating principal amounts from yield-generating components.
CEO Avtar Sehra, who also co-founded the project and has served as CEO of Kaio, emphasizes the importance of ensuring that the USST stablecoin is not classified as a security. The system achieves this by maintaining a slightly over-collateralized structure and incorporating an incentive system linked to minting fees and burn credits, especially in volatile market conditions. Sehra terms this peg maintenance system “synthetic,” distinguishing it from purely algorithmic approaches. He notes that USST is 103% over-collateralized with legitimate money market assets, allowing eligible participants to mint and burn stablecoins without infringing on non-yield bearing requirements of the GENIUS Act.
In addition to the launch of the STBL governance token, recently listed on Binance Alpha, Binance Futures, and Kraken Spot, the startup’s token generation event has been touted as one of the most successful of 2025, achieving a fully diluted valuation of $100 million at launch and surging to over $1 billion shortly thereafter.
Looking ahead, STBL plans to engage in a $100 million minting using Franklin Templeton’s BENJI token and intends to announce several partnerships, including a collaboration with a U.S.-based payments firm. The platform is expected to become publicly accessible in the fourth quarter of this year.
Through these developments, STBL is not only setting a new standard for tokenized assets but is also charting a path toward a more inclusive and decentralized financial ecosystem, raising the stakes for traditional finance models.
