Pendle Launches USDG Market on XLayer with Exclusive Institutional Incentives

Singapore, August 11, 2026. Pendle Finance has deployed a dedicated USDG yield market on XLayer, OKX's institutional-grade Layer 2 network, accompanied by an exclusive incentive program designed to attract institutional liquidity and deepen on-chain yield infrastructure.

The deployment arrives as institutional capital continues migrating toward blockchain-based yield products. BlackRock launched tokenized money market funds BSTBL and BRSRV in August 2026, targeting $50–200 billion in initial assets — representing up to 2% of the firm's $10.7 trillion AUM. Prediction market ETFs, approved in April 2026, accumulated $8.7 billion in assets within months, with daily prediction market volume now exceeding $187 million. September 2024 CFTC regulatory guidance established the compliance framework that preceded this wave of institutional product launches.

The USDG market on XLayer offers yield tokenization infrastructure for institutions seeking on-chain USD-denominated yield exposure. Pendle's architecture separates yield and principal components, enabling participants to trade future yield independently. XLayer's OKX backing provides institutional-grade infrastructure and custody integration pathways. For broader context, USDT alone carries over $120 billion in market capitalization, with Tether controlling more than 60% of stablecoin supply.

XLayer was selected as the deployment venue for its institutional positioning within OKX's ecosystem and its capacity to support large institutional positions with appropriate custody solutions. The exclusive incentive program targets liquidity providers capable of maintaining meaningful market depth, aligning incentive economics with long-term protocol sustainability.

Pendle's stated roadmap includes integration with institutional custody providers and potential expansion to additional Layer 2 networks.

About Pendle Finance

Pendle Finance is a yield tokenization protocol enabling users to separate and trade the yield components of yield-bearing assets. Operating across multiple blockchain networks, Pendle provides institutional and retail participants with tools to manage yield exposure, hedge interest rate risk, and access fixed-rate returns from on-chain financial products.

About XLayer

XLayer is OKX's Layer 2 blockchain network, built to support institutional-grade financial applications with high throughput, low transaction costs, and deep integration with OKX's broader ecosystem of custody, trading, and compliance infrastructure.