Borrowing USDC with FUSD as collateral… Pinchain and Plume yield strategies revealed

FinChain and Plume unveiled FLEX FINO, an on-chain strategy that lets users deposit FUSD—a token fully backed by tokenized U.S. short-term Treasuries and compliant money market funds—as collateral to borrow USDC and deploy it into liquidity pools. The strategy caps its utilization rate at 90%, and FinChain projects a maximum expected yield of 7.2% annually under base-case assumptions. Redemption settlement is set at T+2, while interest settlement runs on a T+14 to T+30 cycle. The launch matters as a test of demand for yield-bearing RWA collateral in on-chain credit markets, pairing tokenized Treasury exposure with stablecoin leverage. Next, watch adoption of the 90% utilization cap and whether realized yields track the 7.2% target as USDC borrowing costs and Treasury returns shift.