Introducing the USD Prime Vault: Treasury-Backed Yield on Your USD

You’re always moving money around. Between bills, subscriptions, and the next big purchase, your dollars can sit idle.

Now, KAST Earn gives you another option to make that balance work.

With the USD Prime Vault, you can earn yield on USD through USDKY, a 1:1 backed stablecoin powered by M0. Yield is generated by short-term U.S. Treasury Bill reserves and reflected in the value of USDKY over time.

It sits alongside the existing Gauntlet Alpha Vault, which uses dynamic DeFi strategies to generate yield.

How the USD Prime Vault Works

When you deposit into the USD Prime Vault, your USD is converted into USDKY, which is held directly in your Privy wallet (Privy is a Stripe company). You maintain control of your assets at all times.

USDKY accrues yield, which is reflected in the value of your vault balance. As yield accrues, the redemption value of USDKY increases.

While both Gauntlet and the USDKY token offer yield, the mechanism behind each is completely different.

Feature	Gauntlet Alpha Vault	USD Prime Vault
Funds Flow	USDC is transferred to your wallet and then deposited onchain in a third-party vault.	Direct mint: USDKY is transferred to your Privy wallet and accrues yield while held in it.
Yield source	Third-party DeFi strategies.	Treasury-backed: Yield is generated by underlying Treasury reserves.
Infrastructure	Uses external third-party vaults.	Held in your dedicated Privy wallet.
Provider	External DeFi providers (for example, Gauntlet strategies).	No DeFi strategy provider: Yield accrues directly from Treasury-backed reserves.

How to Use the USD Prime Vault

The USD Prime Vault is designed to work alongside your USD Spending Balance.

You can move funds into the vault when they’re not being used, and withdraw at any time.

Earnings are realized when you withdraw funds to your USD spending balance.

There are no deposit caps or lockups. The APY is variable and reflects current performance, so it may fluctuate and is not guaranteed.

To get started, tap Earn, select USD Prime Vault, and enter your deposit amount.

Review the estimate, then tap Confirm.

What You Should Know

What exactly is USDKY?

USDKY is a 1:1 backed stablecoin powered by M0. When you deposit into USD Prime, your USD is converted into USDKY, which is held in your own Privy wallet.

How does USDKY derive its value?

USDKY derives its value from underlying M collateral (primarily short-term U.S. Treasury Bills), and the yield generated by that collateral is reflected in the value of USDKY over time.

Is the yield fixed?

No. APY is variable and reflects real-time market conditions, specifically the yield on short-term U.S. Treasury Bills. The current APY is always visible in the KAST app.

Can I access my funds anytime?

Yes. Withdrawals from USDKY to your USD Spending Balance are near-instant.

Are the funds onchain?

Yes. USDKY is issued on Solana and held in your Privy wallet. You can view the wallet address and token balances onchain using a Solana explorer.

Put Your USD to Work

If you keep USD on hand for bills, subscriptions, and everyday spending, the USD Prime Vault gives you a way to make that balance work. Instead of sitting idle, your USD can earn yield from Treasury-backed reserves via USDKY, directly within KAST Earn.

You still keep full flexibility. When it’s time to spend, simply redeem back to your USD Spending Balance. A simpler way to put idle dollars to work with Treasury-backed yield, inside KAST Earn.

Disclaimer: This content is for general informational purposes only and does not constitute investment, legal, tax, or financial advice. Digital assets involve high risk and may result in total loss. Please do your own research and consult professional advisors before making any decisions. Read full disclaimer here.