Why it Exists
Interest rates are not uniform across the world because economies are not uniform. They reflect differences in growth, inflation, credit demand, risk, and policy.
In simple terms:
Developed markets like the U.S. or Japan are stable, liquid, and low-yielding.
Emerging markets are growing faster, more volatile, and high-yielding.
Economic Reality Behind Rates
In low-yield economies: Capital is plentiful. Central banks keep rates low to encourage borrowing and investment.
In high-yield economies: Capital is scarce. Governments raise rates to attract funding and stabilize their currency.
The spread between what it costs to borrow in the U.S. and what you can earn abroad — in Egypt, Brazil, or Nigeria — is the foundation of the global carry trade.
United States
5.2%
USD
~2%
Brazil
14%
BRL
9–10%
Egypt
20%
EGP
12–15%
Turkey
35%
TRY
20%+
Nigeria
16%
NGN
10–12%
This yield gap is not an anomaly — it’s the world’s built-in return gradient. Money naturally flows from where it’s idle to where it’s valuable.
Global institutions have captured this dynamic for decades, borrowing cheaply in one market and lending at a premium in another. Hamilton’s insight is that these yield differentials can now be tokenized, fractionalized, and made accessible to everyone — without the complexity of traditional finance.
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