[RFC] Migrate BGCI Away from Universal Assets

Summary

This RFC proposes removing all Universal-issued assets from the Bloomberg Galaxy Crypto Index DTF (BGCI) basket:

  • Replace uXRP with cbXRP
  • Replace uADA with cbADA
  • Replace uSOL with Base Bridged SOL
  • Replace uLINK with LINK on Base
  • Remove uXLM, for which no suitable replacement has been identified on Base

The weight currently allocated to uXLM would be proportionally redistributed across BGCI’s remaining constituents.

Motivation

Universal has announced that it is sunsetting the uAsset product suite at the end of October 2026. Universal’s documentation describes uAssets as wrapped, cross-chain assets backed by underlying reserves and redeemed through Universal’s merchant and custody system.[1]

Because BGCI currently depends on five Universal-issued assets, the Universal wind-down requires the basket to migrate to supported alternatives where available. Retaining the affected uAssets would expose BGCI to avoidable liquidity, redemption, custody, and operational risks as Universal winds down the product.

BGCI currently has the following Universal exposure:[2]

  • uXRP:​ approximately 15.15%
  • uSOL:​ approximately 10.23%
  • uLINK:​ approximately 1.56%
  • uADA:​ approximately 1.45%
  • uXLM:​ approximately 1.20%

Suitable Coinbase- or Base-supported analogs are available for XRP, SOL, LINK, and ADA. No sufficiently liquid and operationally supportable XLM representation has been identified on Base.

This RFC therefore proposes replacing the four supported assets and removing XLM exposure from BGCI.

Proposed changes

1. Replace uXRP with cbXRP

  • Remove: XRP (Universal) (uXRP)​
  • Add: Coinbase Wrapped XRP (cbXRP)​
  • Preserve the asset’s relative basket allocation, subject to the final rebalance weights

Coinbase describes its wrapped assets as 1:1-backed representations of assets held in Coinbase custody.[3]

2. Replace uADA with cbADA

  • Remove: Cardano (Universal) (uADA)​
  • Add: Coinbase Wrapped ADA (cbADA)​
  • Preserve the asset’s relative basket allocation, subject to the final rebalance weights

3. Replace uSOL with Base Bridged SOL

  • Remove: Solana (Universal) (uSOL)​
  • Add: Base Bridged SOL
  • Preserve the asset’s relative basket allocation, subject to the final rebalance weights

The Base–Solana bridge supports bidirectional transfers of SOL and other Solana assets between Solana and Base.[4]

4. Replace uLINK with LINK on Base

  • Remove: Chainlink (Universal) (uLINK)​
  • Add: LINK on Base
  • Preserve the asset’s relative basket allocation, subject to the final rebalance weights

The proposed LINK token on Base is:

0x88Fb150BDc53A65fe94Dea0c9BA0a6dAf8C6e196[5]

5. Remove uXLM

Remove the following token without adding a direct replacement:

  • Asset:​ Stellar (Universal)
  • Symbol:​ uXLM
  • Base address:​ 0x378c326A472915d38b2D8D41e1345987835FaB64
  • Current basket weight:​ approximately 1.20%[2]

No suitable, sufficiently liquid XLM replacement has been identified on Base. The uXLM allocation should therefore be proportionally redistributed across BGCI’s remaining constituents.

Indicative post-migration basket

Based on the basket weights currently reported by the Reserve API, proportionally redistributing uXLM’s approximately 1.20% allocation would produce the following indicative basket:

  • cbBTC:​ 35.2126%
  • bsdETH:​ 36.0526%
  • Base Bridged SOL:​ 10.3543%
  • LINK on Base:​ 1.5789%
  • cbADA:​ 1.4676%
  • cbXRP:​ 15.3340%

[12:59 PM]

These weights are indicative. The executable proposal should use the then-current basket state, verified replacement-token addresses, and approved rebalance parameters at the time of submission.

Risks and considerations

  • Tracking deviation:​ Removing XLM means BGCI will deviate modestly from the published Bloomberg Galaxy Crypto Index composition.
  • Wrapper and bridge risk:​ The replacement assets introduce dependencies on Coinbase custody, Base bridging infrastructure, or Chainlink CCIP rather than Universal’s infrastructure.
  • Future XLM replacement:​ XLM could be reconsidered if a suitable, liquid, and operationally supportable representation becomes available on Base.

Specification

If approved, the governance proposal should:

  1. replace uXRP with cbXRP;
  2. replace uADA with cbADA;
  3. replace uSOL with Base Bridged SOL;
  4. replace uLINK with LINK on Base;
  5. remove uXLM without adding a direct replacement;
  6. proportionally redistribute uXLM’s allocation across the remaining constituents.

All replacement-token addresses should be independently verified before the executable proposal is submitted.

Sources

[1] Universal Protocol — Introduction to uAssets
[2] Reserve API — Current DTF basket data
[3] Coinbase — Coinbase Wrapped Assets
[4] Base Documentation — Base–Solana Bridge
[5] BaseScan — LINK on Base

1 Like

All seems very logical following the sunsetting of uAssets.

Shame there is no alternative for XLM though, the deviation away from the published index isn’t ideal. I don’t think this should prevent the rebalance given the urgent need to remove uAssets but we should endeavour to find an alternative analog and reintroduce XLM back into the basket ASAP.

No issues with the introduction of the dependencies mentioned. If anything, the diversification across independent, established infrastructure providers is welcome.