Hourglass is a platform that provides yields for institutionally-certified stablecoins, connecting on-chain Capital with real-world financial infrastructure through a Vault mechanism, non-upgradable contracts, and segregated KYC/Non-KYC pools.
In partnership with Stable, Hourglass has launched the Pre-iUSDT Vault, enabling USDC deposits on Ethereum, KYC verification via Sumsub, wallet screening using Chainalysis, 1:1 non-KYC withdrawals at any time, and activation of Recovery Mode after 180 days if the bridge is interrupted.
- The Vault model separates KYC/Non-KYC verification, contracts cannot be upgraded, and Non-KYC withdrawals are 1:1 on Ethereum.
- Pre-Deposit and Stable: Phase 2 attracted approximately $1.8 billion from over 26,000 wallets, with strict limits and KYC rules.
- Recovery Mode after 180 days is a safe backup mechanism, KYC via Sumsub, wallet screening using Chainalysis.
What is Hourglass?
Hourglass is an institutional stablecoin yield platform that connects on-chain Capital with traditional financial partners through secure and compliant Vaults.
Hourglass's core values are transparency and security: contracts are non-upgradable, KYC and Non-KYC pools are separated, KYC/KYB verification is conducted via Sumsub, and wallet screening is done using an integrated Chainalysis rule set.
Which user group does Hourglass serve?
The project targets organizations and individuals who comply with KYC and want access to stable yields, while still providing instant deposit and withdrawal options for those who haven't completed KYC verification via the Non-KYC Pool.
This approach allows organizations to deploy legitimate Capital , while ordinary users retain the right to withdraw USDC at a 1:1 ratio on Ethereum , reducing the risk of long-term Capital lock-up.
“The contracts are not upgradeable; Vai separation limits who can mark users as KYC verified and authorize withdrawals.”
Hourglass document, Security & Trust Model, 2025.
How does Hourglass's Vault mechanism work?
All USDC deposits receive 1:1 pre-iUSDT into the Non-KYC Pool; after successful KYC verification, the balance is transferred to the KYC Pool and becomes eligible for deployment with institutional partners.
During the Yield phase, only KYC-verified USDC can be withdrawn to the deployed treasury; once the Stable mainnet is launched, KYC-verified users can withdraw iUSDT on the Stable via the LayerZero bridge. Non-KYC-verified users can withdraw USDC at a 1:1 ratio at any time.
Why does Hourglass separate KYC and Non-KYC Pools?
Separating the funding pool ensures that unverified Capital remain within the contract, while only KYC-verified Capital can be deployed to generate profits with the partner bank.
The "segregated accounting" model helps with compliance, reduces the risk of mixing funds, and increases auditability, while maintaining immediate liquidation for non-KYC compliant individuals.
How does Recovery Mode protect users after 180 days?
If the bridge is unavailable, after 180 days the Vault switches to Recovery Mode, allowing users to withdraw directly on-chain: Non-KYC users can withdraw USDC at a 1:1 ratio, while KYC users can withdraw the remaining USDT and USDC proportionally.
This mechanism, clearly stated in the contract and Zellic's inspection report, acts as a permissionless "safety valve" to reduce the risk of dependence on bridge infrastructure.
“This function… moves the archive to the Final Recovery phase after the configured lockout period (180 days) has expired.”
Zellic, Stable Pre-deposit Smart Contract Security Assessment, October 2025.
What is Pre-iUSDT Vault in the Stable ecosystem?
This is the Stable early access program operated by Hourglass: deposit USDC on Ethereum, complete KYC via Sumsub, and receive iUSDT on the Stable via the LayerZero bridge when the mainnet is launched.
In the meantime, non-KYC users can still withdraw USDC 1:1 on-chain. The process and Vai of the parties involved (KYC provider, authorized bridge) are publicly disclosed in the official documentation.
What were the results of the Pre-Deposit program with Stable?
Phase 2 concluded in early November 2025 with a total deposit of approximately $1.8 billion from around 26,000 wallets; at one point, deposits exceeded $1.6 billion before the deposit window closed.
During the aggregation and verification process, the project recorded over 10,000 wallets that had completed KYC verification and contributed approximately $1.1 billion, meeting the eligibility criteria. Wallets exceeding their spending limits will receive refunds as per further announcements.
How does Hourglass implement KYC/KYB and wallet screening?
Hourglass uses Sumsub for KYC/KYB verification and integrates the Chainalysis rules to screen for risky addresses; wallets that fail screening can withdraw USDC directly from the contract.
The deadline for KYC in Phase 2 is set for 07:59 Beijing time on November 12, 2025, which corresponds to 06:59 on November 12, 2025 in Vietnam time, with a 72-hour verification window after receiving the link.
"Screen individuals with political connections and place them on watchlists… with ongoing monitoring."
Sumsub, Reusable KYC & AML Screening, product document, 2025.
What security implications does a non-upgradable contract offer?
Hourglass contracts are non-upgradeable, limiting the risk of unexpected logic changes; permissions are clearly separated by Vai .
In DeFi , immutability fosters trust but sacrifices flexibility. Hourglass compensates with a verification process, Vai limitations, and a timed Recovery Mode mechanism.
Who are the investors in Hourglass?
On May 15, 2023, Hourglass raised $4.2 million in seed Capital led by Electric Capital , with participation from Coinbase Ventures, Circle Ventures, Tribe Capital , and Hack VC.
The funding helped the team develop the core product and expand its infrastructure, paving the way for recent collaborative campaigns with the Stable ecosystem.
Who is the Hourglass team?
Details about the team have not been widely released in official documents; the project's communication focuses on the Vault mechanism, security, and the partnership program with Stable.
Institutional investors and independent reviewers (e.g., Zellic) are important indicators for users to assess the seriousness and risk control framework of a project.
"The next generation of the market… will be the Tokenize of securities."
Larry Fink, CEO of BlackRock, speaking in November 2022.
How does Hourglass compare to some popular stablecoin yield solutions?
Each solution optimizes yield in a different way: Hourglass prioritizes pool separation and recovery mechanisms; Ondo/OUSG and Mountain/USDM require KYC in the primary market; Maker/sDAI is an on-chain DSR mechanism.
| Criteria | Hourglass (Pre-iUSDT) | Ondo (OUSG/USDY) | Mountain (USDM) | Maker (sDAI) |
|---|---|---|---|---|
| KYC | Deposit open; to receive interest, you must complete KYC (Subscribe). | KYC is required, usually for investors to meet eligibility criteria. | KYC for primary Mint/redeem; permissionless transfer. | No KYC is required to submit DSRs. |
| Yield platform | Institutional partners will pay iUSDT upon mainnet launch. | T-Bills/Money Market Fund Certificates | Short-term T-Bills reserves, Token rebasing | DSR adjusted by Maker |
| Withdraw money | Non-KYC: withdraw USDC 1:1 anytime; KYC: via bridge. | Mint/ redeem subject to legal conditions | Mint/redeem with KYC-verified account | Withdraw Dai at any time |
Details: Ondo requires KYC and, depending on the product, investors must be eligible; USDM allows free circulation but Mint/redeem requires KYC; sDAI is subject to DSR regulation by Maker.
What do the results of Phase 2 highlight regarding organizational needs?
The mobilization of $1.8 billion in deposits demonstrates the strong demand for a transparent model with KYC, wallet-based limits, and fair rules, following the "overload" of Phase 1.
International organizations such as IOSCO have also warned of new risks from tokenization, emphasizing the need for transparency regarding ownership, partners, and bridging – which aligns with how Hourglass announced its mechanism.
“ Tokenize assets could introduce new risks… particularly concerning the nature of the underlying assets and counterparty risk.”
IOSCO, comprehensive assessment, November 2025 (Reuters).
Hourglass's official information channel
- Website: hourglass.com
- X: @hourglasshq
- Discord: discord.gg/dSGnh8trGA
Frequently Asked Questions
Can those who don't do KYC verification still qualify for interest rate benefits?
No. Non-KYC only holds USDC in the contract and can withdraw 1:1 at any time; yield only applies to the KYC-verified balance.
What if I don't receive the KYC link?
If your wallet fails the Chainalysis verification, you can withdraw USDC directly from the contract; simply verify the KYC link from the official dashboard.
How does Recovery Mode work after 180 days?
After 180 days, anyone can transfer their Vault to Recovery to KYC withdraw their USDT/ USDC share proportionally, or withdraw USDC on-chain without KYC verification.
How much has Phase 2 of Stable raised?
Approximately $1.8 billion was disbursed from over 26,000 participating wallets; the amount eligible after KYC verification was recorded at approximately $1.1 billion from over 10,000 wallets.
Does Hourglass have its own Token or is it listed on an exchange?
There is no official information about tokenomics or its listing yet; users should follow the project's announcement channels.
