Can stablecoins generate double-digit returns without exposing investors to lending protocols or decentralized finance risks?
Figment, the world's largest independent staking provider with over $18 billion in assets under stake, believes it has cracked the code.
On November 17, 2025, Figment announced a partnership with OpenTrade and Crypto.com to launch what they're calling a "new category" of stablecoin yield. The product promises approximately 15% annual percentage rate on stablecoins through a combination of Solana staking rewards and derivative hedging, a structure that sidesteps the credit risk inherent in traditional DeFi lending markets.
The announcement arrives as institutional appetite for stablecoin yield products continues to accelerate, with total stablecoin market capitalization exceeding $180 billion globally. But most existing yield products expose investors to either DeFi protocol vulnerabilities or counterparty credit risk from centralized lenders. This product attempts to chart a different path.
The Mechanics Behind Price-Neutral Staking
The product's structure relies on a relatively straightforward arbitrage between staking yields and futures markets. When institutional clients deposit stablecoins (USDC, USDT, or other approved tokens) through Figment's platform, OpenTrade converts these deposits into Solana (SOL) tokens. These SOL tokens are then staked through a dedicated Figment-operated validator node.
Here's where the innovation comes in. Staking SOL typically generates returns between 6.5% and 7.5% annually, according to historical Solana network data. To reach the advertised 15% APR target, OpenTrade simultaneously opens short positions in SOL perpetual futures contracts. These derivatives positions are designed to neutralize the price exposure of the underlying staked tokens.
The mechanism works because perpetual futures contracts on Solana typically trade at a premium to spot prices in bull markets, meaning short sellers collect funding rate payments from long position holders. When combined with staking rewards, this dual income stream has historically generated returns that more than double the base staking rate, according to the press materials.
Crypto.com serves as both the custodian for the staked SOL assets and the exchange venue where the hedging transactions execute. The assets are held in segregated accounts with security interests granted to investors, a legal structure that OpenTrade emphasizes provides protections not typically available in DeFi protocols.
Why Institutions Are Paying Attention
The product targets a specific pain point for institutional treasury managers. Companies holding large stablecoin balances face opportunity costs, since idle stablecoins generate zero return. Traditional banking yields on dollar deposits remain low, while DeFi lending protocols expose institutions to smart contract vulnerabilities and opaque counterparty risks.
Andy Cronk, Co-founder and Chief Product Officer of Figment, framed the offering as bringing "battle-tested infrastructure and security mindset to stablecoins." Figment operates validators across more than 80 blockchain networks and maintains institutional-grade security protocols including slashing protection and audited infrastructure.
The institutional focus is deliberate. Unlike retail DeFi products that often lack clear legal frameworks, this product establishes identified counterparties available around the clock. Jeff Handler, Co-Founder and Chief Commercial Officer of OpenTrade, emphasized that the platform was "purpose built" to allow companies to power stablecoin yield products with "enterprise-grade technology systems" and "time-tested legal protections."
OpenTrade has backing from notable crypto venture firms including Andreessen Horowitz's a16z Crypto fund and Circle, the issuer of USDC stablecoin. This institutional pedigree matters in a market where regulatory scrutiny of crypto yield products has intensified following high-profile failures like Celsius Network and BlockFi.
The Risk Profile and Market Context
The 15% APR figure deserves scrutiny. The product materials include a disclaimer noting that the rate is "based on historical data" and "subject to change at any time." Figment explicitly states it does not "set, control, or guarantee yield rates or returns."
Several variables affect the actual returns. Solana staking rewards fluctuate based on network inflation rates and total staked supply. Perpetual futures funding rates can turn negative during bearish market conditions, meaning short position holders would pay rather than receive funding payments. During periods of extreme volatility or low liquidity, the cost of maintaining hedges could erode returns significantly.
The reliance on Solana as the underlying staking asset also concentrates risk. While Solana has established itself as one of the largest proof-of-stake networks with hundreds of billions in cumulative transaction volume, the network has experienced outages historically. Because clients delegate rather than transfer control of tokens, staking providers like Figment do not exercise discretionary authority—but network downtime can still affect staking rewards and the operational timing of the hedging strategy.
Counterparty risk, while reduced compared to unsecured DeFi lending, still exists. The product depends on Crypto.com maintaining operational stability as both custodian and execution venue. If the exchange faces liquidity constraints or regulatory actions, investor access to assets could be impaired. The segregated account structure provides some legal protection, but unwinding these positions during a crisis scenario would likely take time.
Karl Turner, Director at Crypto.com, noted the exchange has "purpose built" its platform to serve trader needs, but institutional clients will need to conduct their own due diligence on the exchange's operational resilience and regulatory compliance.
Competitive Landscape and Market Implications
The stablecoin yield market has evolved rapidly. Protocols like Ethena offer synthetic dollar products backed by delta-neutral perpetual futures strategies, generating yields that have ranged from 8% to over 30% depending on market conditions. Real-world asset (RWA) protocols like Ondo Finance and Mountain Protocol provide yields backed by U.S. Treasury bills, typically in the 4% to 5% range.
This Figment-OpenTrade product sits between those alternatives. It offers higher yields than RWA products but with additional smart contract and market risk. It provides more institutional infrastructure than pure DeFi alternatives but with potentially lower yields during unfavorable funding rate environments.
The partnership's significance extends beyond a single product launch. Figment's expansion into stablecoin yield represents the maturation of crypto infrastructure providers moving beyond pure validator operations into more complex financial products. OpenTrade's ability to secure partnerships with both Figment and Crypto.com demonstrates growing institutional acceptance of structured crypto yield strategies.
For the broader market, success of this product could validate the staking-plus-hedging model and prompt competitors to launch similar offerings. The entrance of established players with institutional relationships may also pressure DeFi protocols to improve their own risk management and transparency standards.
Final Thoughts
The Figment-OpenTrade partnership bets that institutions prioritize clearly defined counterparties and legal structures over maximum yields. This reads the institutional market correctly, where risk committees value operational resilience over percentage points.
The 15% APR target appears realistic during favorable conditions but optimistic long-term. Perpetual futures funding rates are cyclical, and bear markets would compress returns. The model's scalability across other proof-of-stake networks like Ethereum or Avalanche is intriguing, though funding rate dynamics will compress as more capital adopts similar strategies.
Most significant is what this signals: crypto infrastructure providers are evolving from pure validator operations into orchestrators of complex financial strategies. This vertical integration between staking, custody, and structured products may become the institutional crypto template. Whether this complexity accelerates or hinders adoption remains the open question.
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