USDB is the native yield-bearing stablecoin on Blast, an Ethereum layer-2 network launched in 2024 by Tieshun Roquerre (Pacman), the founder of Blur. Unlike conventional dollar tokens, USDB rebases upward in user wallets, distributing yield sourced from short-dated US Treasury bills and the MakerDAO DAI Savings Rate. The broader stablecoin market sits at $315.3B as of 2026-06-05 per DeFiLlama, and yield-bearing designs like USDB now compete with non-yielding incumbents USDT ($187.2B) and USDC ($75.6B) for institutional and DeFi mint access.
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This article explains how USDB is minted, redeemed, and bridged, how it differs from the deprecated Coinbase USDbC token (which sounds similar but is unrelated), and where it sits in the wider yield-bearing stablecoin category alongside Ethena USDe and Ondo USDY.
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USDB is the auto-rebasing dollar token issued natively on Blast L2. Users deposit ETH or USDC, USDT, or DAI into the Blast bridge on Ethereum mainnet, and receive USDB on Blast at a one-to-one dollar peg. The token then accrues yield directly in the holder's wallet balance, with no separate staking step required.
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The mechanism is two-sided. ETH deposits earn staking yield through validator rewards routed via Lido. Stablecoin deposits earn yield routed into MakerDAO's DAI Savings Rate, which itself is collateralized in part by tokenized T-bills. The result is a single token that behaves like USDC for payments and like a money-market fund share for holders. For the protocol's own description of this design, see the Blast documentation.
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USDB and USDbC are different assets from different issuers. USDB is Blast's native yield-bearing stablecoin on Blast L2, backed by T-bills and DAI Savings Rate exposure. USDbC was a bridged USDC variant Coinbase issued on its Base L2 during Base's mainnet launch, with no yield component, and Coinbase has since deprecated it in favor of native USDC.
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The confusion is mostly typographical. USDbC was the bridged USDC token on Base, used by early Base users to hold a dollar-pegged asset before Circle issued native USDC on Base. Coinbase announced the wind-down of USDbC liquidity routes in its USDbC deprecation notice. USDB is unrelated to that token, lives on a different chain, and carries a different risk and yield profile.
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USDB yield comes from two offchain sources funneled onchain. Stablecoins deposited into the Blast bridge are converted into DAI and deposited into the DAI Savings Rate contract, which pays out interest funded by MakerDAO's allocation to tokenized Treasury bill products. Yield accrues continuously and is reflected by an increasing USDB balance in each holder's wallet.
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The DAI Savings Rate itself is set by MakerDAO governance and tracks short-dated T-bill yields plus a buffer. MakerDAO maintains the rate parameters and reserve composition through its onchain governance process documented at the MakerDAO site. Blast adds no incremental credit risk beyond the DSR's underlying collateral, but it does add bridge contract risk and a custodial layer between depositor and DSR position. Mint access for USDB is restricted to the canonical Blast bridge; there is no third-party primary issuance route.
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Minting USDB is gated through the Blast bridge on Ethereum mainnet. Users deposit USDC, USDT, or DAI, and the bridge mints an equivalent USDB balance on Blast L2 at par. Redemptions reverse the flow, with a withdrawal challenge window standard for optimistic rollups before assets return to mainnet.
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The bridge is the only canonical issuance path, which is the defining feature of Blast's "yield-native" design. Because the bridge holds all underlying collateral and rotates it into DSR, every USDB in circulation has a direct claim on a known reserve. The full technical flow, including the yield distribution contracts, is described in the Blast USDB yield guide. Settlement to mainnet uses the standard Blast L2 fraud-proof exit, with finality dependent on the withdrawal period. Secondary market access is through DEXes on Blast and bridged representations on other chains, but only mainnet redemption clears at par.
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USDB sits in the yield-bearing stablecoin tier, a small but growing slice of the $315.3B stablecoin market. The two largest tokens, USDT and USDC, do not pass yield to holders, while yield-bearing designs from Ethena, Ondo, and Sky compete on source of yield and on distribution. USDB's distinguishing trait is that it is the default dollar on a single L2 rather than a multi-chain token.
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The comparison below uses DeFiLlama supply figures as of 2026-06-05.

DeFiLlama's stablecoin dashboard tracks live supplies across the category. USDB's supply is reported within Blast TVL rather than as a standalone DeFiLlama stablecoin entry, which is one reason institutional analysts often miss it in headline comparisons.
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USDB's risk profile is the sum of three layers: the underlying T-bill and DSR collateral, the MakerDAO governance and DAI peg, and the Blast bridge contract that custodies the reserve. None of these layers is unique to USDB, but the combination concentrates risk in a single bridge contract that holds all backing assets.
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The Blast bridge is a multisig-controlled contract during the network's early phases, with a stated path toward progressive decentralization. Holders should read the bridge architecture in the Blast docs directly rather than rely on summaries. Secondary risks include MakerDAO governance changes to the DSR, peg deviation in DAI, and L2 fraud-proof execution under contested withdrawals. USDB has not failed peg materially since launch, but its short operating history and the bridge's upgradeability mean institutional treasury teams generally classify it differently from native USDC or USDT.
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USDB is the default quote currency on Blast DEXes, the primary collateral on Blast lending markets, and the settlement token for most Blast-native NFT and perp venues. Because yield accrues automatically, users earn a baseline return whether or not their USDB is actively deployed in a yield strategy, which changes the opportunity cost calculation for sitting idle.
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This rebasing behavior interacts with DeFi composability in non-obvious ways. Some lending markets pass through the rebase to depositors, while others socialize it across the pool. Liquidity pools that pair USDB with another asset must account for impermanent-loss math against a balance that grows. Builders integrating USDB should consult the rebase mechanics in the Blast USDB yield guide before assuming standard ERC-20 semantics. For traders, USDB functions like cash-plus-T-bill, useful for parking inventory between RFQ fills or between secondary market trades.
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USDB is one of the clearer signals that the stablecoin market is stratifying. Non-yielding dollars still dominate by supply, but new issuance is shifting toward tokens that pay holders, whether through Treasuries (Ondo USDY, BlackRock BUIDL at $3.0B), through derivatives strategies (Ethena USDe at $4.5B), or through savings-rate routing (USDB, Sky USDS at $8.6B).
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The structural question is whether yield-bearing designs displace non-yielding ones or coexist with them in different lanes. Regulatory treatment matters here. The GENIUS Act, introduced as S.1582, would limit certain yield-passing structures for payment stablecoins in the US. If that constraint hardens, yield-bearing tokens may consolidate into investment-product wrappers rather than checking-account substitutes. Either way, the orchestration problem grows: an institution holding inventory across USDC, USDT, USDe, USDY, and USDB needs a neutral way to clear between them. Eco operates as a neutral aggregator across primary mint access and onchain liquidity, which is the layer where this fragmentation gets resolved.
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Methodology: stablecoin supply figures are pulled from DeFiLlama as of 2026-06-05. Mechanism descriptions reference Blast and MakerDAO documentation as cited inline.
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