Binance Expands Institutional Collateral Options with Tokenized RWAs USYC and cUSDO Boosting Capital Efficiency

Binance, the largest blockchain infrastructure provider and cryptocurrency exchange by user base and trading volumes, has expanded its off-exchange collateral options for institutional clients by integrating tokenized real-world assets (RWAs) USYC and cUSDO via 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 collateral options beyond fiat, Treasury securities, and digital tokens like Bitcoin, positioning Binance to enhance capital efficiency for institutional clients [1][2].

The integration of USYC and cUSDO aligns with Binance’s strategy to bridge traditional finance and blockchain markets. USYC, a tokenized share of a Cayman Islands-listed short-duration yield fund, offers yield on USD holdings through reverse repos collateralized with U.S. Treasuries and is redeemable in USDC. cUSDO, a wrapped tokenization of OpenEden’s USD-pegged stablecoin, is backed by assets like U.S. Treasury bills and provides on-chain stability. Both assets enable institutions to leverage blockchain benefits—such as 24/7 availability, faster settlement, and transparency—while mitigating risks associated with on-chain volatility [1][2].

The tokenized RWA market has seen rapid growth, with non-stablecoin RWAs reaching $24 billion in June 2025 compared to $15.2 billion in December 2024. Industry forecasts suggest this asset class could capture 30% of the $400 trillion traditional financial market by 2034, potentially propelling the crypto sector to $100 trillion in value from its current $3 trillion [1]. Binance’s Triparty Banking Triparty network, launched in 2023, facilitates this expansion by enabling institutions to store collateral with regulated banks while accessing Binance’s liquidity. The platform’s international growth underscores its focus on compliance and risk management, with Binance covering Ceffu’s MirrorX and MirrorRSV service costs and waiving triparty banking fees until 2026 [1][2].

Executives highlighted the strategic significance of the move. Catherine Chen, Head of Binance VIP & Institutional, emphasized tokenization’s role in enhancing user experience and unlocking crypto adoption, while Kash Razzaghi of Circle and Jeremy Ng of OpenEden noted the integration’s potential to bridge traditional and blockchain finance. By offering yield-bearing, compliance-focused assets like USYC and cUSDO, Binance addresses institutional demand for capital efficiency and risk mitigation, reflecting broader industry trends toward hybrid financial instruments [1][2].

Analysts suggest this development could accelerate RWA tokenization in regulated markets, where transparency and compliance are critical. However, long-term success hinges on the assets’ performance in off-exchange scenarios and their ability to meet liquidity expectations. Binance’s focus on infrastructure over asset issuance—collaborating with tokenized products from Circle and OpenEden without formal partnerships—positions it as a facilitator in standardizing RWA adoption. The move signals the sector’s maturation, with major players experimenting with innovative structures to meet institutional-grade requirements [1][2].

Source:

[1] [Binance Announces Institutional OTC Settlement Expansion] (https://www.binance.com/en/support/announcement/4107094f14024afbbf5145591b66a07b)

[2] [Circle’s USYC Supported as Yield-Bearing Collateral] (https://www.stocktitan.net/news/crypto.html)

[3] [Binance Expands Institutional OTC Settlement with USYC] (https://www.ainvest.com/news/binance-expands-institutional-otc-settlement-usyc-cusdo-tokenized-rwas-boosting-liquidity-capital-efficiency-2507/)

[4] [Circle's USYC Now Supported as Yield-Bearing Off-Exchange Collateral for Binance's Institutional Clients] (https://www.marketscreener.com/news/circlea-s-usyc-now-supported-as-yield-bearing-off-exchange-collateral-for-binancea-s-institutional-ce7c5cd3d18bff26)