In our recent AMA "Navigating Regulations for Stablecoin-Powered Fixed Income Products," leaders from InvestaX, IXS, and OpenTrade came together to explore the legal and operational frameworks enabling compliant, yield-bearing fixed income products powered by stablecoins. With institutions increasingly seeking real-world asset (RWA) exposure, understanding how licensing, structuring, and infrastructure intersect has never been more critical.
Nishtha opened by outlining why InvestaX and IXS launched stablecoin-powered fixed income products in the first place. With stablecoin supply exceeding $250 billion, the team saw a growing base of institutions and individuals holding idle USDC or USDT without earning yield. What was missing was the legal infrastructure.
The solution: the "Earn" product, built in partnership with OpenTrade, offering US Treasury bills and high-yield corporate bonds, with plans for private credit and other instruments.
Key regulatory hurdles stemmed from the fact that these products lie at the intersection of securities law, banking regulations, the Payment Services Act (Singapore), and fund management rules. To navigate this, InvestaX and IXS used a licensed approach:
The user experience was also a priority: both platforms offer a clean, 2-3 click interface with daily yield data and no transaction fees.
Ronnie noted that traditional fixed income products offer stable, predictable returns, while DeFi yields remain highly volatile and limited by caps or smart contract dependencies. Real-world asset (RWA) yields, in contrast, are backed by structured collateral, managed by regulated financial entities, and deliver sustainable returns.
Julian added that most RWA tokens are securities and require licensed venues for issuance. IXS and InvestaX spent years obtaining the necessary licensing to serve both institutional and retail investors. He emphasized that institutional capital is increasingly flowing into real-yield assets, not DeFi yield, and cited growing demand from treasury-backed Bitcoin companies, miners, and funds.
Julian also called out the macro shift in the U.S.: With the Genius Act and broader regulatory shifts, trillions in stablecoins are expected to enter the market, driving demand for secure, USD-denominated RWA tokens.
Nishtha explained that OpenTrade provided plug-and-play infrastructure aligned with MAS licensing, enabling global access to stablecoin holders. OpenTrade acts as a regulated backend that enables custody, execution, and settlement of RWAs.
Ronnie described OpenTrade’s setup:
This flexible structure allows clients like IXS and InvestaX to customize the product flow within their licensing frameworks.
Julian highlighted that of thousands of RWA products reviewed since 2018, fewer than 20 made it through due diligence to list on InvestaX and IXS. OpenTrade cleared this bar.
Nishtha detailed how InvestaX built an Earn product interface with seamless onboarding and support for various fixed-income instruments, from BlackRock's high-yield bond ETF to Fidelity's money market fund. Plans include adding real estate, carbon credits, and trade finance.
Clients go through AML/KYC, with retail access on IXS and institutional onboarding on InvestaX. Minimum investments range from $1 to $100K+.
Ronnie and Nishtha emphasized that compared to DeFi, RWA-backed products offer:
All three speakers agreed that the RWA market is moving from narrative to infrastructure.
Ronnie sees a shift from digital analogs to fully on-chain native financial instruments.
Nishtha predicted that RWA infrastructure will become foundational to capital markets, attracting real capital with coexisting regulation and innovation.
Julian expects:
The fixed income cycle, once dominated by off-chain processes, is now clearly making its way on-chain.
Watch the full recording below.