In our recent AMA on “Navigating Regulations for Stablecoin-Powered Fixed Income Products On-Chain,” 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.

In case you missed it, you can watch the video recording below.

Below is a concise summary of the major insights shared by the InvestaX, IXS, and OpenTrade teams.

1. Why Bring Fixed Income Products On-Chain?

Over $250 billion in stablecoins are currently held by users earning zero return, despite demand for low-risk yield. At the same time, the market for tokenized real-world assets (RWAs) is exploding. U.S. Treasuries, money market funds, and corporate bonds are being brought on-chain to meet the demand for stable, predictable yield.

But until now, what’s been missing is regulated, compliant infrastructure that lets these stablecoins flow into fixed income markets.

That’s what motivated us to launch fixed income products linked to Blackrock ETF and Fidelity USD MMF to solve exactly this: allow users to lend their stablecoins to access short-tenor yield from T-bills and corporate bonds without touching DeFi or taking smart contract risk.

2. Why Stablecoin Yield Needs Regulation

The last crypto cycle proved that without regulatory guardrails, “high yield” can mean high risk.

Here’s why oversight matters:

• Fixed income products like T-bills and money market funds are regulated for a reason - they come with rules that protect investors.
• When offering these through stablecoins, you’re effectively bridging traditional securities law with blockchain-based finance.
• That creates new legal intersections: securities, payments, fund management, and even money lending laws must all be considered.

That’s why InvestaX and IXS built their fixed income products inside a licensed framework, working with regulators in Singapore and the Bahamas, and integrating with partners like OpenTrade who follow strict institutional standards.

3. RWA-Backed Yields vs. DeFi Yields

What makes tokenized fixed income products, like the BlackRock High Yield Corporate Bond and the Money Market Fund, different from the typical DeFi yield options that we're seeing today?

Stability and predictability:

• DeFi yields are normally unregulated and fluctuate widely. For example, rates on Aave and Compound can swing between 1% and 10%, depending on market activity.
• RWA-backed yields, in contrast, offer the stability and predictability powered by real-world assets like BlackRock’s High-Yield Corporate Bond ETF or Fidelity’s Money Market Fund. These are familiar, regulated instruments with clear credit ratings, portfolio composition, and audited performance data.

Risk Management:

• RWA-backed yields can offer better quantified measures of risk, as they are backed by fixed income products in the traditional world.
• Meanwhile, it's very difficult to quantify the smart contract risk in DeFi pools.

As a result, with RWA-backed yields, investors know exactly where the yield comes from, and can rely on predictable returns with full transparency and protection.

4. How InvestaX Ensures Regulatory Compliance and Protects Investors

Fixed income products like T-bills and corporate bonds are regulated financial instruments, and delivering them through stablecoins and blockchain rails means navigating securities laws, fund management rules, lending regulations, and payments frameworks - especially in markets like Singapore and the Bahamas.

Here’s how InvestaX handles it:

• Setting up bankruptcy-remote SPVs that act as lenders.
• Ensuring that loans are fully collateralized with real assets - no speculation, no liquidity mining, no DeFi games.
• Using licensed partners for asset custody, settlement, and management.
• Holding Capital Markets Services (CMS) and Recognized Market Operator (RMO) licenses, which allow us to offer real securities to both institutional and (through IXS) retail users.

The result: a product that’s compliant across jurisdictions and built with investor protection as the starting point.

5. The Bigger Picture: Where Is The RWA Space Heading?

RWAs started as a “crypto narrative.” But today, they’re rapidly becoming core financial infrastructure.

With stablecoin regulation accelerating (e.g., the U.S. Genius Act), and major institutions like BlackRock and Fidelity involved, we're entering a phase where blockchain rails are powering traditional finance, making it faster, more accessible, and more efficient.

That's a wrap. Stay tuned for future updates!