Collaterals

USST is minted exclusively against high-quality, regulated, yield-bearing real-world assets, not volatile crypto assets. Approved/whitelisted collateral types currently include:

• Tokenized U.S. Treasury Bills and money market funds — e.g., Ondo Finance's USDY and OUSG

Upcoming Collaterals:

• Tokenized institutional money market funds — e.g., BlackRock's BUIDL, Centrifuge Janus Henderson Anemoy Treasury Fund (JTRSY)
• Tokenized short-duration credit/treasury products — e.g., Franklin Templeton's BENJI

Each collateral type is managed through a dedicated, segregated Vault within the protocol (for example, USDY sits in a "T-Bills Vault" yielding roughly 4–5% annually, backed by Treasury bills with 3–12 month maturities). Only assets from trusted, whitelisted issuers and custodians are accepted, which also lets STBL index issuer/custodian allowlists directly, avoiding duplicate KYC for users who are already whitelisted with a partner like BlackRock or Franklin Templeton.

USST is minted at roughly 97% of deposited collateral value, with the remaining ~3% retained in the vault as a haircut, keeping the system over-collateralized (STBL cites ~103% collateralization with pure money market assets). All collateral is held in audited, non-custodial smart contracts, never by a central entity, with reserves verifiable fully on-chain.