Binance launches RWUSD, tokenizing U.S. Treasury bonds and other RWAs
Binance Earn introduces RWUSD to its platform, a product backed up by Real-World Assets such as tokenized U.S. Treasuries. What can users stand to gain from it?
- Users can subscribe to Binance’s RWUSD using stablecoins.
- The product offers a yield of 4.2% APR for traders.
According to the recently published notice, the product will be available for Binance users to access starting on July 28 on the platform. Users can start subscribing to the product using eligible stablecoins authorized on the site depending on where the user is based, such as USDT (USDT) and USDC (USDC).
Upon subscription, users can enjoy yield of up to 4.2% in annual percentage rate based on the amount of holdings. This means that users will receive the same amount of RWUSD in their accounts as the value of stablecoins they choose to deposit into the product on a 1:1 ratio.
Moreover, Binance claims it will not charge subscription fees to users that choose to deposit stablecoins into the product.
Although RWUSD is Binance’s first principal-protected Earn product explicitly-backed by tokenized U.S. Treasury assets, the platform has previously participated in similar structures via Binance Labs such as OpenEden’s T-Bill product.
Is RWUSD a stablecoin?
No. RWUSD is not a stablecoin in the sense that it cannot be traded among users of the platform. The product functions more as an internal record within Binance’s Earn suite and its accrued yield cannot be transferred between users.
It is described as a “principal-protected Earn product which aims to benchmark yields in Real-World Assets such as tokenized US Treasury Bills.”
That being said, it can be redeemed on a 1:1 ratio. When redeeming the product, users will receive the same amount of yield in USDC form, regardless of the subscribed asset. This means that if the user initially subscribed to RWUSD using USDT, they will still receive credits in USDC after redeeming it.
Binance users can choose to redeem through two modes: Fast Redemption and Standard Redemption. Both fast and standard redemption are applicable to redemption fees through the platform.
