BGUSD Challenges RWUSD in Yield-Bearing Stablecoin War

The battle for dominance in yield-bearing stable assets has intensified as Bitget’s BGUSD challenges Binance’s RWUSD. Both products aim to offer stable returns on digital assets, yet they differ significantly in structure, transparency, and user flexibility. Bitget’s BGUSD, launched in May 2025, is a yield-bearing certificate backed by tokenized U.S. Treasury funds, including Superstate’s USTB, and integrates with Bitget’s broader ecosystem. It offers a base annual percentage rate (APR) of 5.0%, with daily yield crediting and redemption at a 1:1 ratio into USDC, albeit with a 0.05% subscription and redemption fee [1]. Users can also leverage BGUSD for margin trading, futures contracts, and participation in Bitget’s Launchpool and PoolX programs, enhancing its utility beyond yield generation [1].

Binance’s RWUSD, by contrast, is a non-tokenized internal yield product tied to real-world asset (RWA) returns. While it provides up to 4.2% APR—also credited in USDC—holders do not receive direct ownership of the underlying assets. The yield rate is set at Binance’s discretion, with no public disclosure of RWA partners or holdings. RWUSD is redeemable at a 1:1 ratio into USDC but is restricted to use within Binance’s platform, lacking interoperability and external deployment capabilities [1]. This closed-loop design prioritizes simplicity but limits user autonomy and transparency.

The structural distinction between BGUSD and RWUSD reflects broader philosophical differences in how each platform approaches user trust. BGUSD is a tokenized certificate, which theoretically allows for transferability and integration with other DeFi and CeFi systems. Bitget has also announced third-party attestations to verify the backing of its stable asset, reinforcing trust in its reserve structure. RWUSD, however, lacks tokenization and operates as an internal ledger entry, offering no external verification of its asset backing. This difference is especially relevant in the post-FTX era, where transparency and proof of reserves have become central to investor confidence [1].

BGUSD’s higher yield and broader ecosystem utility further distinguish it from RWUSD. In addition to its 5.0% APR, BGUSD enables users to deploy their holdings across multiple functions within Bitget, including as collateral for loans and in trading activities. This multi-functional approach increases capital efficiency and aligns with growing user demand for products that offer both returns and flexibility [1].

The competitive dynamics between BGUSD and RWUSD highlight a shift toward tokenized real-world assets in the crypto space. As traditional interest rates remain high, the ability to tokenize fixed-income instruments like U.S. Treasuries and offer them as yield-bearing digital assets becomes increasingly attractive. BGUSD’s transparent, tokenized model sets a new benchmark in this space, potentially influencing future product development in the industry [1].

[1] Source: BGUSD vs RWUSD: How Bitget’s Yield-Bearing Certificate Challenges Binance’s RWA Product (https://coinedition.com/bgusd-vs-rwusd-bitget-binance-stablecoin-yield/)