Aliens TLDR

Fixed-income investments are typically seen as lower-risk investment options that prioritize cash flow and capital preservation over asset value appreciation.

Investments in fixed income are an important tool for many financial businesses, and are useful for treasury management purposes at a wide variety of companies.

Treasury bills, municipal and corporate bonds, money market securities, bond mutual funds, and fixed-income ETFs are some popular fixed-income instruments available on the traditional market.

Since they provide a stream of interest income and return the principal investment upon maturity, fixed-income investments may be preferred by more conservative investors concerned with volatility.

Institutional investors can use fixed-income investments for capital preservation, risk management and liquidity.

Many portfolio managers at these institutions traditionally allocate a significant proportion of their assets to fixed-income investments.

Circle Yield * is a fixed-income investment that generates returns based on demand for USD Coin (USDC) , one of the world’s fastest growing dollar digital currencies, fully backed by cash and short-dated U.S. government obligations so that it is always redeemable 1:1 for U.S. dollars.

One advantage of fixed-income investments is that they typically offer decreased exposure to volatility risk compared to other investments, like stocks.

Traditionally, investing in fixed-income products has often provided higher rates of interest income than the relatively low rates offered by bank savings accounts/deposits.

Likewise, investments in Circle Yield can provide higher rates of return than other options for fixed-income investing, like Treasury notes or municipal bonds1.

Circle Yield investments are available for terms of one, three, six, or twelve months, enabling institutional accredited investors to optimize returns on idle treasury.

Some of the risks associated with fixed-income investments include: Treasury bonds from the US government typically offer the least default risk.

In instances where businesses or funds make substantial investments in fixed-income securities, they may be at risk of not being able to access sufficient liquidity to meet their working capital requirements.

Fixed-income investments may offer lower asset value appreciation compared to high-growth stocks and mutual funds, particularly in low interest rate environments.

Institutional investors looking for short-term fixed-income opportunities that offer meaningful returns have few options in the current market.

In this climate, looking at innovative solutions like Circle Yield can offer institutional accredited investors the predictability of fixed income while also earning returns greater than those found in traditional financial markets like Treasury notes or municipal bonds.

Investment professionals and fund managers looking for high-interest, short-term fixed income opportunities with good income potential have few options remaining in the traditional markets.

Invested capital benefits from the stability of USD Coin (USDC) while generating higher returns than those typically achieved through traditional fixed-income products, all without having to directly hold crypto assets on the balance sheet.