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Brale issues USDB and manages its reserves. Flashnet operates the protocol and funds the BTC rewards paid to eligible USDB holders.

How USDB Is Backed

Brale reports that USDB is fully backed by US Treasury bills, cash, and cash equivalents. Brale holds the reserves and handles direct redemption for customers who complete its onboarding process. Flashnet’s rewards program is separate from these reserves. Holding USDB gives you a dollar-denominated token; the BTC you receive comes from Flashnet’s reward payouts.

Where Rewards Come From

Flashnet funds rewards from protocol fees and other revenue, converting a portion to BTC for daily payouts. Your trading volume determines your reward tier, with annual rates from 3.5% to 6%. See Rewards for the thresholds and calculation. The program is intended to encourage people to hold and use USDB. More trading activity can generate more fee revenue, but that does not establish how long rewards can be funded or guarantee future rates.

Reserves and Redemption

Brale is responsible for reserve management and the terms of direct redemption. Review its current disclosures and account requirements when assessing USDB’s backing or arranging a USD redemption. To convert USDB to BTC or USDC, use Flashnet Trade. The redemption guide explains where to start, and the FAQ covers common questions about Brale and rewards.