Binance Expands Off-Exchange Collateral with USYC cUSDO for Institutional Yield Generation

Binance has expanded its off-exchange collateral options by integrating two tokenized yield-generating assets, USYC and cUSDO, through its Binance Banking Triparty platform and institutional custodian partner, Ceffu. This move allows institutional investors to store these assets off-exchange while retaining access to Binance’s trading infrastructure and earning yield on posted margin. The addition broadens the collateral available on the platform beyond traditional fiat and Treasury securities, as well as digital tokens like Bitcoin. The integration reflects Binance’s strategy to enhance capital efficiency for institutional clients and align with growing interest in tokenized real-world assets (RWAs)[1].

USYC represents shares in the Hashnote International Short Duration Yield Fund, a Cayman Islands-listed indexed money market fund that lends short-term reverse repos collateralized with U.S. Treasuries and offers near-instant redemption into USDC. The asset’s native availability on the BNB Chain is expected to boost its accessibility across multiple ecosystems. Meanwhile, cUSDO is a wrapped tokenization of the OpenDollar (USDO) stablecoin, issued by Bermuda-regulated OpenEden. It is backed by assets like U.S. Treasury bills and reverse repos, providing on-chain stability to holders.

The expansion underscores Binance’s role in bridging traditional finance and blockchain markets. By enabling institutions to use USYC and cUSDO as collateral, the platform facilitates yield generation while addressing risk management and regulatory compliance. Catherine Chen, Head of Binance VIP & Institutional, highlighted that tokenizing RWAs leverages digital asset properties such as 24/7 availability, faster settlements, and on-chain transparency, which could drive broader crypto adoption. Kash Razzaghi of Circle and Jeremy Ng of OpenEden emphasized the significance of the integration in advancing institutional crypto participation, particularly for compliance-focused, yield-bearing assets[1].

Binance’s Triparty Banking model, introduced in 2023, mirrors traditional finance’s triparty custodial structures, allowing institutions to store collateral with regulated banks while accessing Binance’s liquidity. The platform’s international expansion has enabled clients to meet regulatory requirements and optimize capital allocation. To incentivize adoption, Binance will cover Ceffu MirrorX and MirrorRSV service costs and waive triparty banking fees until 2026. Institutions seeking off-exchange collateral services must contact Binance Banking Triparty, Ceffu, or a VIP/Institutional account manager[1].

The growth of tokenized RWAs has accelerated, reaching $24 billion in June 2025—a rise from $15.2 billion in December 2024. Analysts project this asset class could capture 30% of the $400 trillion traditional financial market by 2034, creating potential for a 100x expansion of the crypto sector from its current $3 trillion valuation. While these forecasts highlight long-term potential, the immediate impact of Binance’s integration lies in its ability to offer institutions diversified, secure, and yield-bearing collateral options that align with evolving market demands[1].

Source: [1] [Binance Expands Off-Exchange Collateral Options With USYC and cUSDO Tokenized Assets] [https://coinmarketcap.com/community/articles/6882355182fa5c0266a0b8dd/]