Binance invests in OpenEden to expand tokenized RWAs

Binance Labs has made a strategic investment in OpenEden, a platform focused on tokenizing real-world assets.

According to a Binance post, Binance Labs, Binance’s venture capital arm, aims to bring the benefits of real-world financial yields on-chain by integrating traditional assets, like Treasury Bills, into the decentralized finance ecosystem through OpenEden. This is where Binance’s (BNB) investment comes into play. 

Binance Labs’ investment is expected to help OpenEden expand its offerings and further integrate tokenized RWAs into the DeFi space. The funding will be used to develop new products, build partnerships, and explore emerging markets.

In June, McKinsey estimated that the market value of tokenized real-world assets could reach $2 trillion by 2030, with a bullish scenario projecting up to $4 trillion. They noted that adoption would vary across asset classes based on factors such as feasibility, market maturity, and risk appetite.

OpenEden details

OpenEden is a Monetary Authority of Singapore-licensed fund management company and a full-stack tokenization technology firm. Its flagship product, a tokenized U.S. Treasury Bill Fund, known as TBILL, is currently the largest tokenized Treasury Bill product outside the U.S.

Last month, the platform surpassed $100 million in total value locked for its tokenized TBILLs, according to Binance Labs. 

The platform allows KYC-verified investors, decentralized autonomous organizations, and crypto treasury managers to mint TBILL tokens using self-custodial wallets. This enables investors to generate returns on stablecoins through tokenized U.S. Treasury Bills, offering a decentralized alternative to traditional financial products. 

By managing the tokenization process in-house, OpenEden claims to deliver operational efficiencies and higher yields for token holders. To date, the company has onboarded over 100 institutional clients, according to Binance Labs.

Andy Chang, Investment Director at Binance Labs, highlighted OpenEden’s potential to capitalize on the growing demand for RWAs and stablecoins, saying, “we are excited to support OpenEden in their mission to unlock new opportunities in Web3 through sustainable technologies.”

The rise of tokenized RWAs, particularly Treasury Bills, has gained momentum over the past year. According to Messari, the total value locked in RWAs has reached $8 billion, reflecting the growing demand for these assets in the blockchain space.