USD1 Vault Goes Live With Institutional Strategy World Liberty Financial and UltraYield have joined forces to launch a new yield vault built around USD1, World Liberty Financial's dollar-pegg
World Liberty Financial and UltraYield have joined forces to launch a new yield vault built around USD1, World Liberty Financial's dollar-pegged stablecoin, as the base asset. The vault is managed by Edge Capital and targets market-neutral returns across crypto markets, insulating investors from directional price risk.
USD1 is 100% backed by short-term US government treasuries, US dollar deposits, and other cash equivalents, with custody handled by BitGo. The stablecoin has surpassed $4 billion in circulation since its launch in March 2025, reflecting growing institutional appetite for the asset.
The vault employs basis trading and funding rate capture, operating across a mix of traditional finance, centralised finance, and decentralised finance venues. According to UltraYield, execution runs across three platforms: Binance, Bybit, and Hyperliquid. This multi-venue approach is designed to harvest persistent yield from funding rate differentials and price dislocations without taking on naked directional exposure.
The strategy is a market-neutral macro approach utilising DeFi protocols, with a core focus on market-making while hedged for directional risk, combined with opportunistic trades including funding rate basis trades, cross-chain arbitrage, and inverse funding rate trades.
Edge Capital is a crypto hedge fund and liquidity provider to early-stage protocols, with DeFi and CeFi trading expertise and a market-neutral approach, managing capital for institutional investors and leading crypto foundations since 2020. The firm currently oversees around $300 million in assets under management, according to UltraYield.
The pairing of a regulated, treasury-backed stablecoin with a market-neutral institutional strategy signals a broader push to bring structured yield products to DeFi, one that bridges the gap between traditional finance discipline and on-chain capital markets.
Sources:World Liberty Financial: USD1 Launch Announcement (BusinessWire)World Liberty Financial Launches USD1 on Canton Network (CFOtech)Edge Capital Background (CoinDesk)
