Exploring RWA-Backed Stable Coins with Ben Shyong of Anzen Finance

Curious if stable coins can truly be stable?

In our latest episode of the "Web3 with Sam Kamani" podcast, we delved into a thought-provoking conversation with Ben from Anzen Finance. Their approach to creating a stable coin goes beyond the traditional model by backing it with private credit notes and other real-world assets (RWAs). Below, we explore what this means for the broader DeFi ecosystem, why stability matters, and how Anzen Finance is striving to provide a more grounded alternative for everyday transactions.

A closer look at real-world assets (RWAs)

Most stable coins today are pegged to fiat currencies and often rely on reserves held in bank accounts or government bonds. Anzen Finance adds another layer by incorporating RWAs, specifically private credit notes, into the collateral pool. Private credit typically refers to debt instruments issued by companies that don’t have the scale to issue public bonds. These notes can offer higher yields, but they also require meticulous due diligence to ensure the borrowers are creditworthy.

By introducing private credit and other RWAs into the mix, Anzen Finance aims to give stable coin holders a method of earning returns without exposing them to wild price fluctuations. This could be especially helpful for businesses looking to transact in crypto but hesitant about typical price volatility in digital assets like Bitcoin or Ethereum.

Why private credit notes?

A public bond issuance can be out of reach for smaller companies with limited track records or narrower markets. Private credit fills this gap, giving these companies a way to secure funding while providing investors with potentially higher yields than most government or corporate bonds. Anzen Finance’s role is to evaluate these opportunities rigorously.

In the podcast, Ben underlined that the team at Anzen is focused on diversification within their asset portfolio. They spread investments across different sectors and credit instruments, aiming to manage risk effectively. This approach is crucial; relying too heavily on a single type of RWA could expose a project to unnecessary vulnerabilities.

Stability and higher returns

One recurring theme was the importance of stability in the crypto ecosystem. Whether you’re a freelancer who wants payment in crypto or a business settling invoices across borders, price swings can be a deal-breaker. This is where stable coins come into play: they serve as a “safe haven” for those who want the benefits of blockchain (fast settlement, transparent record-keeping, and reduced intermediaries) without the unpredictable price movements of other cryptocurrencies.

Ben emphasized that Anzen’s stable coin is designed for both routine transactions and yield generation. By holding Anzen’s stable coin, you gain exposure to these private credit investments, potentially earning more than what’s typically offered by traditional stable coin issuers. This yield is not guaranteed—every investment has risks—but the diversified structure helps mitigate extreme volatility.

Ensuring transparency and user trust

A critical part of introducing RWAs into the crypto space is establishing trust. Anzen Finance has embedded robust compliance processes to uphold transparency. This includes third-party audits, on-chain tracking of reserves, and clear disclosures about where funds are deployed. While no investment is risk-free, communicating openly with users is a step toward fostering confidence.

Ben explained that regulatory frameworks around stable coins and RWAs vary by jurisdiction. Anzen Finance works diligently to remain compliant, though this often involves juggling multiple legal requirements. According to Ben, the challenges of building in Web3 extend beyond technical hurdles; navigating regulations is a continuous, evolving process.

Peering into the future of DeFi

The conversation also pivoted to broader trends. Tokenizing real-world assets is an idea that has circulated in crypto circles for years. Ben believes we’re only now seeing early, meaningful steps in that direction. As more institutions get involved, the lines between traditional finance and DeFi may blur, enabling new use cases for stable coins that go well beyond trading.

Anzen Finance’s roadmap includes expanding to multiple chains and forming partnerships to increase the utility of their stable coin. That involves finding new ways for users to leverage their holdings, whether it’s payments, lending, or staking. There’s also an emphasis on forging alliances with businesses that might benefit from a more predictable method of crypto-based transactions.

Building in Web3: The good, the bad, and the complex

Ben shared his journey into crypto, which started back in 2014 when he first experimented with Bitcoin. His story mirrors that of many early adopters who initially explored the technology as a curiosity, only to realize its broader potential. Now, he’s helping build a complex financial product on top of blockchain—an endeavor that involves software development, legal compliance, financial modeling, and community management.

One of the biggest challenges he highlighted was coordinating multiple moving pieces. Unlike traditional startups, Web3 projects must grapple with a rapidly evolving regulatory environment, market volatility, and community-driven governance. Patience and adaptability are vital.

Insights for founders and innovators

For anyone looking to build in this space, Ben’s advice is to balance innovation with pragmatism. Aim for products that solve real-world problems. Stable coins that offer higher yields might be attractive, but it’s crucial to design them in a way that is accessible and understandable. Also, don’t overlook legal frameworks. Working with competent legal counsel from the outset can help stave off future complications.

Ben also mentioned the importance of building strong networks. While competition exists among stable coin issuers and DeFi platforms, there’s also a spirit of collaboration in Web3. Finding reputable partners and like-minded projects can accelerate growth and innovation.

Final thoughts on RWA-backed stable coins

Throughout this episode, it became clear that stable coins backed by RWAs like private credit could fill a notable gap in the market—offering potential yield while preserving stability. But it’s not a silver bullet. Diversification, transparency, and due diligence remain essential for anyone venturing into this area.

For businesses transacting large sums, a stable coin that holds its value and generates returns could be a game-changer. For retail users, the ability to hold a stable coin that actually earns interest—versus just sitting idle—might also be compelling. Regardless of your perspective, the conversation with Ben highlights that stable coin innovation is far from over. The next few years promise even more development, especially as traditional finance professionals and regulators continue engaging with blockchain technology.

Disclaimer
Nothing in this blog or podcast should be considered investment advice. Always conduct your own research and consult professional advisors when making financial decisions.

If you’d like to hear the full conversation with Ben and dive deeper into the nuances of RWA-backed stable coins, tune in on your preferred platform:

• Spotify: Listen here
• Apple Podcasts: Listen here

Connect with Ben and Anzen

• Website: anzen.finance
• Twitter: @anzenfinance
• Discord: Join here
• Telegram: t.me/AnzenCommunity

If you have questions or would like to be a guest, visit our Web3Pod.xyz page. Your feedback means a lot—leave us a review on Apple Podcasts or Spotify and share this episode with a friend who might be curious about the future of stable coins and DeFi.

‍